The Design of Vehicle Routes for a Third Party Logistics Service Provider Using Simulated Annealing Algorithm

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

Increased globalisation and the subsequent competitive pressures have emphasised the importance of Third-Party Logistics (3PL) in managing logistics processes as well as customer and supplier relationships in logistics and supply chain management. Organisations can gain approximately 9% of saved costs and a 15% increase in capacity and quality, on average, through outsourcing their logistics activity to 3PL service providers. Transportation planning and management is a basic service provided by 3PL service providers with the goal to provide customer value in excess of their cost to serve customers. Since the transportation cost constitutes a significant fraction of the total logistics cost, 3PL service providers are motivated to improve their efficiency by ensuring on-time deliveries and pick-ups by designing least-cost routes with efficient routing strategies. In this paper, a Simulated Annealing (SA)-based metaheuristic algorithm was developed for and used by a 3PL service provider for the efficient routing of the vehicles for pick-up for an automotive parts manufacturing company.
OriginalsprogEngelsk
TidsskriftInternational Journal of Business Performance Management
Vol/bind11
Udgave nummer1/2
Sider (fra-til)1-18
Antal sider18
ISSN1368-4892
DOI
StatusUdgivet - 2009

Fingeraftryk

Third-party logistics
Logistics service providers
Simulated annealing algorithm
Service provider
Costs
Routing
Logistics
Transportation costs
Globalization
Transportation planning
And supply chain management
Customer relationship
Supplier relationships
Simulated annealing
Pickup and delivery
Manufacturing companies
Logistics outsourcing
Logistics cost
Customer value
Metaheuristics

Citer dette

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abstract = "Increased globalisation and the subsequent competitive pressures have emphasised the importance of Third-Party Logistics (3PL) in managing logistics processes as well as customer and supplier relationships in logistics and supply chain management. Organisations can gain approximately 9{\%} of saved costs and a 15{\%} increase in capacity and quality, on average, through outsourcing their logistics activity to 3PL service providers. Transportation planning and management is a basic service provided by 3PL service providers with the goal to provide customer value in excess of their cost to serve customers. Since the transportation cost constitutes a significant fraction of the total logistics cost, 3PL service providers are motivated to improve their efficiency by ensuring on-time deliveries and pick-ups by designing least-cost routes with efficient routing strategies. In this paper, a Simulated Annealing (SA)-based metaheuristic algorithm was developed for and used by a 3PL service provider for the efficient routing of the vehicles for pick-up for an automotive parts manufacturing company.",
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The Design of Vehicle Routes for a Third Party Logistics Service Provider Using Simulated Annealing Algorithm. /.

I: International Journal of Business Performance Management, Bind 11, Nr. 1/2, 2009, s. 1-18.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

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