An Application of Savings Algorithm to solve the Vehicle Routing Problem with Simultaneous Pickup and Delivery

Abstract

This research has been devoted to application on savings algorithm towards vehicle routing problem with simultaneous pickup and delivery which is an important process in logistics management in which the clients require both pickup and delivery service at the same time. The savings algorithm is developed by modifying the linking process to simultaneously considering the pickup and delivery demands in order to find a feasible solution of vehicle routes and minimal transportation distances of 40 benchmark problems. In addition, the nearest neighbor algorithm is employed for feasible solution comparison. Our results exhibit that the distance obtained via the proposed savings algorithm is lower than that of the nearest neighbor algorithm for 22%.