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Distribution: inventory and transport - route planning

5 important questions on Distribution: inventory and transport - route planning

What are the four criteria that need to be held in mind when determining a route for transport?

1. Each customers demand is met
2. The capacity and the speed limit of the means of transport are not exceeded
3. The total time that a means of transport is on the way, is not exceeded
4. The delivery takes place at a time at which the customer is present, and at a frequency considered desirable by customers

Which three objectives can be set when deciding a route?

To minimize the total distance to be covered
to minimize transport costs
to minimize the total time needed to distribute the goods from manufacturers to customers, at a given service level

What is a transhipment problem?

A transhipment problem is a problem that explicitly involves transhipment through a depot or warehouse, this makes it an expansion of a transport problem.

What is a Travelling salesmen problem?

if the limitations under 2,3 and 4 above are not binding, then minimizing the total distance can also be used as an objective. The problem then consists of finding the shortest route to visit all customers. This is a trading salesmen problem.

What is a knapsack problem?

If the limitations mentioned under 3 and 4 above are not binding, then the problem consists of finding the minimum number of means of transport required, which reduces it to the classical knapsack problem (capacity problem).