Distribution planning using capacitated clustering and vehicle routing problem: A case of Indian cooperative dairy
Journal of Advances in Management Research
ISSN: 0972-7981
Article publication date: 7 June 2019
Issue publication date: 21 November 2019
Abstract
Purpose
The purpose of this paper is to reduce the distribution cost of an Indian cooperative dairy. The reduction of cost was achieved with the application of the clustering method (k-means clustering) and capacitated vehicle routing problem (cheapest link algorithm (CLA)).
Design/methodology/approach
Capacitated k-means clustering was used to split delivery locations into similar size groups (i.e. clusters) based on proximity without exceeding a specified total cluster capacity. Each cluster would be served by a local stockist. CLA was then used to find delivery routes from dairy (i.e. depot) to stockist in each cluster and from stockist to all other delivery locations within the cluster.
Findings
K-means clustering and CLA suggested optimal delivery routes on which vehicles will run. The complete algorithm was able to provide a solution within 30 s.
Practical implications
Clustering of delivery locations and use of heterogeneous fleet of delivery vehicles can result in considerable savings in daily operational cost.
Originality/value
Most of the research related to the use of demand clustering to improve distribution routes has been theoretical, which do not take into account real-world limitations like vehicle’s specific limitations. The authors tried to address that gap by taking a real-world case of a cooperative dairy and compared the result with existing distribution routes used by dairy. This work can be used by other dairies or distribution companies according to their scenario.
Keywords
Acknowledgements
The authors want to acknowledge the cooperative dairy for providing the authors with the data for this work.
Citation
Rautela, A., Sharma, S.K. and Bhardwaj, P. (2019), "Distribution planning using capacitated clustering and vehicle routing problem: A case of Indian cooperative dairy", Journal of Advances in Management Research, Vol. 16 No. 5, pp. 781-795. https://doi.org/10.1108/JAMR-12-2018-0113
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited