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The Algorithm That Opens the Way for Delivery Companies
Universitat Politecnica de Catalunya (12/04/08)

Universitat Politecnica de Catalunya doctoral student Miquel Angel Estrada has developed a delivery optimization system that uses a tabu search-based metaheuristic algorithm to help delivery companies find the best way of transporting and delivering their goods. The system defines the route, size of the vehicles used, and the location of stopping points, and can estimate the cost of the delivery and choose a strategy for sending the goods from three possible options. The system creates conclusions based on the variables involved. For example, the cost of handling goods in a hub affects the ideal-capacity calculations for the vehicles at the loading bays. The system demonstrates that small packages should be shipped in large trucks when handling costs are low, but vans, which can be filled faster, are better when handling costs are high. Estrada's system has been applied in situations where the vehicles are carrying full loads, and has reduced costs by 7 percent compared to solutions provided by other heuristic methods, and has improved costs by more than 12 percent when partial loads are used. The system also can calculate the extra costs delivery companies experience when vehicles are stuck in traffic, and estimates that costs rise exponentially in areas where the traffic circulates at an average of less than 40 km/h for at least four hours a day.