Route planning optimization problem at a logistics company

Abstract

A 21th century company's main goal is to increase their income and decrease their expense, even so they give great attention to social responsibility, the protection of the environment and other factors, because if does not prospers the company, then it cannot properly strive for their goals. In the light of the current keen competition on the market is essential to minimize the expenses. In the case of a logistics company one of the most determinative cost is the shipping related expenses. To minimize the amount of money spent on shipping a good solution can be the fuel cost reduction. In this study I aimed to minimize the fuel consumption with the optimization of routes. To find the best possible solutions I chose the LP Simplex method, using a highly beneficial add-on of Microsoft Excel called Solver.