Strategies for an Integrated Distribution Problem

Abstract

The problems arising in the logistics of commercial distribution are complex and involve several players and decision levels. One important decision is related with the design of the routes to distribute the products, in an efficient and inexpensive way. This article explores three different distribution strategies: the first strategy corresponds to the classical vehicle routing problem; the second is a master route strategy with daily adaptations and the third is a strategy that takes into account the cross-functional planning through a multi-objective model with two objectives. All strategies are analyzed in a multi-period scenario. A metaheuristic based on the Iteratetd Local Search, is used to solve the models related with each strategy. A computational experiment is performed to evaluate the three strategies with respect to the two objectives. The cross functional planning strategy leads to solutions that put in practice the coordination between functional areas and better meet business objectives.