WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 21, 2024
Heuristic-Based Hybrid Algorithm for Value Stream Design with Milk-Run Approach
Authors: ,
Abstract: In this study, a heuristic algorithm has been developed for the Milk-Run related to the vehicle routing problem. It aimed to supply in the right place and at the right time in a short time with the internal logistics system approach. Since the proposed problem formulation is NP-hard, we suggested a heuristic-based hybrid genetic algorithm method to solve the problem. Real life problem is solved with a milk run approach inspired by vehicle routing problems. Firstly the model was developed with mixed integer linear programming then the problem was solved with the proposed hybrid genetic algorithm. The aim reduce the total transportation cost in the network and the number of vehicles required by using an efficient vehicle routing strategy. It explains the change in the existing distribution and collection systems of a logistics service company. The response of variables such as time, weight, volume, and pallet was measured under various scenarios with cost and time savings by applying Milk-Run optimization. The deterministic model and the proposed heuristic algorithm compared the previews and outputs of the paths. Accordingly, 30% and 50% discounts were made on restrictions for six different scenarios.
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Keywords: Milk-run Systems, Vehicle Routing Problem, Integer Programming, Genetic Algorithm, Stream Design, Optimization, Heuristic Algorithm
Pages: 1262-1275
DOI: 10.37394/23207.2024.21.103