Vehicle Routeing in Large Organizations: A Case Study

Logistics may be defined as the provision of goods and services from a supply point to a demand point. In recent times the cost of transport has become a major expense for organizations as a result of escalating fuel costs and higher capital costs for the replacement of vehicles. Hence vehicle routeing in an organization has become an important managerial function for the availability of transport facilities, minimizing the late arrival of the vehicles and providing good service to the employees. Discusses the formulation, solution algorithms, and implementation strategies to be followed in vehicle routeing in a public sector undertaking in India, employing 7,861 people. The well known Clarke and Wright algorithm has been used to obtain the initial solution, and the norms formulated by the management are used to help implement the action plans so as to improve vehicle‐routeing efficiency. Highlights specific financial and other benefits on application of the required routeing. Also mentions some of the limitations of the approach.