School of Science and Engineering Capstone Report Applications of the Vehicle Routing Problem to Logistics Optimization Submitted in: Fall 2017 Written By: RIDA ELBOUSTANI Supervised by: Dr. Abderrazak Elboukili & Dr. Ilham Kissani Table of Contents List of Acronyms and Abbreviations .......................................................................................... 5 List of figures ................................................................................................................................. 6 Acknowledgements ....................................................................................................................... 7 Abstract .......................................................................................................................................... 8 Introduction ................................................................................................................................... 9 Scope of the Project: .................................................................................................................. 9 STEEPLE Analysis: ................................................................................................................ 10 SWOT Analysis: ...................................................................................................................... 11 Literature Review ....................................................................................................................... 12 Overview of the Vehicle Routing Problem ............................................................................ 12 General Formulation of the Vehicle Routing Problem: ....................................................... 14 Types of the VRP: .................................................................................................................... 15 Solving the Travelling Salesman Problem............................................................................. 16 Formulating the Travelling Salesman Problem .................................................................... 16 Analysis: ....................................................................................................................................... 18 Exact Methods: The Munkres Algorithm: ............................................................................ 18 Application:........................................................................................................................... 19 Data: ...................................................................................................................................... 20 Conclusion: ........................................................................................................................... 24 Metaheuristics Method: Nearest Neighbor Algorithm: ....................................................... 24 Application:........................................................................................................................... 25 Solving the Vehicle Routing Problem: ................................................................................... 26 OptaPlanner: ........................................................................................................................ 26 Matlab: .................................................................................................................................. 29 Excel: ..................................................................................................................................... 29 Akhawayn Traveling Salesman Problem: ................................................................................ 31 Problem Statement: ................................................................................................................. 31 3 RIDA ELBOUSTANI Data Gathering: ....................................................................................................................... 32 Implementation:....................................................................................................................... 33 Solution: .................................................................................................................................... 35 Visualization: ........................................................................................................................... 36 Results: ..................................................................................................................................... 37 Limitations: .............................................................................................................................. 37 Virmousil Company Route Optimization:................................................................................ 38 Overview: ................................................................................................................................. 38 Problem Statement: ................................................................................................................. 38 Data Analysis: .......................................................................................................................... 38 Methodology: ........................................................................................................................... 39 Clustering:............................................................................................................................. 39 Final Data: ................................................................................................................................ 40 Implementation:....................................................................................................................... 42 Results Obtained: .................................................................................................................... 43 1st case: The Middle Cluster ................................................................................................ 43 2nd case: The Northern Cluster ........................................................................................... 45 3rd case: The Geznaya Cluster ............................................................................................ 47 4th case: The Eastern Cluster .............................................................................................. 48 Suggestions and Future Work ................................................................................................... 50 Conclusion ................................................................................................................................... 51 References .................................................................................................................................... 52 Appendix A: Project Specifications ........................................................................................... 54 4 RIDA ELBOUSTANI List of Acronyms and Abbreviations VRP: Vehicle Routing Problem. TSP: Travelling Salesman Problem. B&B: Branch and Bound Algorithm. NNS: Nearest Neighbor Search Algorithm. LNS: Large Neighbor Search Algorithm. NC: North Cluster. MC: Mid Cluster. EC: East Cluster. 5 RIDA ELBOUSTANI List of figures Figure 1: STEEPLE Analysis _________________________________________________ 10 Figure 2: SWOT Analysis ____________________________________________________ 11 Figure 3: Vehicle Routing Problem Mechanism __________________________________ 12 Figure 4: Vehicle Routing Problem Components _________________________________ 14 Figure 5: The General Model of the Vehicle Routing Problem ______________________ 15 Figure 6: Types of the Vehicle Routing Problem __________________________________ 15 Figure 7: The Mathematical Model of the Traveling Salesman Problem ______________ 17 Figure 8: Manual Problem Data _______________________________________________ 20 Figure 9: Manual Problem Solution ____________________________________________ 24 Figure 10: NNA Application __________________________________________________ 25 Figure 11: NNA Output ______________________________________________________ 25 Figure 12: OptaPlanner Applications ___________________________________________ 26 Figure 13: OptaPlanner Use Interface __________________________________________ 27 Figure 14: Capitals of Europe Example Using OptaPlanner ________________________ 28 Figure 15: Product Delivery Example Using OptaPlanner__________________________ 28 Figure 16: EXCEL Solver User Interface ________________________________________ 30 Figure 17: Al Akhawayn University Van Schedule ________________________________ 31 Figure 18: Latitude and Longitude Coordinates generated _________________________ 32 Figure 19: Different Stations Drawn by MatLab__________________________________ 32 Figure 20: Stations Spreadsheet _______________________________________________ 33 Figure 21: Visualization Using Bing Maps _______________________________________ 33 Figure 22: Distances generated between different stations __________________________ 34 Figure 23: Vehicle Spreadsheet ________________________________________________ 35 Figure 24: Number of Iterations _______________________________________________ 35 Figure 25: Solution __________________________________________________________ 36 Figure 26: Final Visualization _________________________________________________ 36 Figure 27: Old Distance Traveled ______________________________________________ 37 Figure 28: