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Logistics Operations and Management by Laleh Kardar, Shabnam Rezapour, Reza Farahani

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8. The Vehicle-Routing Problem
Farzaneh Daneshzand
Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran
The distribution of products among customers is considered to be one of the most challenging problems in logistics management. Transportation costs constitute a great portion (generally ranging from 10% to 20%) of the final cost of the goods, 20% of which is related to routing. Furthermore, besides saving transportation costs, it must be noted that better scheduling decision leads to serving more customers in a shorter time and also better customer relationship management (P. Toth, D. Vigo, The vehicle routing problem, SIAM Monographs on Discrete Mathematics and Applications, Philadelphia, 2002).
The distribution ...

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