Vehicle Routing for the Last-Mile Logistics Problem

Fuel consumption is the major contributor associated with the large and growing part of transportation cost in logistics. Optimal vehicle routing approaches not only can provide solutions to reduce their operation costs but can also aim at addressing energy and environmental concerns. This paper outlines a solution to the single-depot capacitated vehicle routing problem with the objective of minimizing daily operation cost with a homogeneous fleet of delivery vehicles. The problem is solved using Simulated Annealing, to provide optimal routes for the vehicles traveling between the depot and destinations. Simulation results demonstrate that the proposed approach is effective to recommend optimal route and reduce operation cost.