Main Article Content
This paper considers the vehicle routing problem with transshipment. Customer demands are of two types: regular demands that are satisfied by the depot and transshipment demands of items from other customers. A simulated annealing (SA) algorithm to generate delivery routes in which both demands can be met in the same delivery routes is developed. The objective is to minimize the transportation cost. Preliminary results from testing the algorithm using numerical examples shows that allowing transshipment incurs additional cost of 0.48%-1.68%, depending on the level of transshipment demand, with the benefit of reducing delivery lead time.
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