Vehicle Routing by Using a Savings Algorithm, A Case Study of ABC Construction Material Store

Abstract

The primary objectives of this research are as follows. 1) To apply a savings heuristic algorithm to optimize the delivery routes for ABC Construction Materials. 2) To compare the performance of the traditional routing method with the optimized routes obtained using the savings heuristic algorithm in the context of ABC Construction Materials. A qualitative research approach was employed, using a sample population of 1 manager, 3 clerical staff, and 10 six-wheel truck drivers from ABC construction material store. Group interviews using a structured interview method were conducted, where a complete set of questions covering the desired topics was prepared. The collected data was then analyzed using a savings heuristic algorithm, and a comparison was made between the old and new methods.

            The research findings revealed that the traditional route planning for goods transportation used a total distance of 2,559 kilometers and consumed a total fuel cost of 89,411.46 baht. However, when applying a savings heuristic algorithm to optimize the delivery routes for 20 customers, divided into 10 pairs of routes, the total distance decreased to 2,333 kilometers, a reduction of 226 kilometers or 8.83%. The total fuel cost was reduced to 73,094.48 baht per trip, a decrease of 16,316.98 baht per trip or 18.25%. This demonstrated the ability to shorten the transportation distance, resulting in lower fuel costs and consequently increased profits for the operators. These results align with the research hypothesis.