Decision Support System for Real Time Vehicle Routing in Indian Dairy Industry: A Case Study

Decision Support System for Real Time Vehicle Routing in Indian Dairy Industry: A Case Study

R. A. Malairajan (Department of Mechanical Engineering, Anna University Tirunelveli, Tuticorin, Tamil Nadu, India), K. Ganesh (Global Business Services - Global Delivery, IBM India Private Limited, Mumbai, Maharashtra, India), M. Punnniyamoorthy (Department of Management Studies, National Institute of Technology, Tiruchirappalli, Tamil Nadu, India) and S. P. Anbuudayasankar (Department of Mechanical Engineering, Amrita School of Engineering, Amrita Vishwa Vidyapeetham, Coimbatore, Tamil Nadu, India)
DOI: 10.4018/ijisscm.2013100105
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Abstract

In today’s highly competitive and demanding environment, the pressure on both public and private organizations is to achieve a better way to deliver values to end customers. There has been a growing recognition that the two goals, cost reduction and customer service are achieved through Logistics and Supply Chain Management (SCM). Transportation of goods continues an important part of in-bound as well as outbound logistics of Supply Chain Management (SCM). Efficient distribution of goods and services is of great importance in today’s competitive market, because transportation constitutes a considerable portion of the purchase price of most products or services. Vehicle routing is considered as an important resource in a distribution logistics management system. Effective plan and control of vehicle operation can significantly reduce the cost of physical distribution system. To overcome the challenges of changing environment, the scheme of vehicle control of a physical distribution system should be dynamic. Thus India has become the top milk producing country in the world. This study addresses the vehicle routing aspect of distribution logistics in Sangam dairy supply chain of Guntur district in Andhra Pradesh. The problem is viewed as Vehicle Routing Problem with Backhauls (VRPB) and a mathematical model is developed with the consideration of various practical constraints. Moreover, a decision support system is developed for dynamic VRPB, which would help the manager in making operational and tactical decisions.
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Introduction

The success of an organization depends on its ability to provide high quality products and services at low costs and on time, thus, exceeding customer expectations. Organizations compete on their ability to utilize their resources effectively and efficiently. The major objective of physical distribution is to ensure that products are available at the right place at the right time and in the right quantity to satisfy customer demand or to fulfill the requirements. As the complexity and importance of the physical distribution increase, the requirements of the design and control efforts of it increase. Since the vehicle control has a profound impact on the overall performance of physical distribution system, there is need for dynamic vehicle control methodology to effectively increase system performance.

Vehicle is considered as an important resource in a physical distribution system. Effective plan and control of vehicle operation can significantly reduce the cost of physical distribution system. To overcome the challenges of changing environment, the scheme of vehicle control of a physical distribution system should be dynamic.

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