Abstract:
This study is a case study based on Softlogic Retail
(Pvt) Ltd, Sri Lanka, which is a famous consumer electronics
company and market leader in Sri Lanka. This company’s
outbound logistics have been considered in this research, and
they are mainly forced into the redistribution process in Sri
Lanka. Extra routing costs due to unreasonable consumption of
additional distance have been noticed in the current
redistribution process. Here, this problem is modeled as a
variant of the vehicle routing problem with a heterogeneous
vehicle fleet. Our objective is to minimize warehouse operation,
administration, and transportation costs by imposing
constraints on capacity and volume. The researchers propose
new heuristic solutions to the problem. A proposed heuristic
algorithm has been used to find the optimal path between
clusters. The computational investigation highlights the cost
savings that can be accrued by this new heuristic. The cost
savings can be accrued at a rate of as much as 37.5 % compared
to the company’s existing method.
