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Abstract

Vehicle assignment is a significant challenge faced by chemical logistics companies. The chemical industry typically outsources the delivery of chemicals to professional logistics companies to meet customers' complex and demanding needs. In this regard, this research explores the case study of a logistics company that selects its delivery modes and formulates its vehicle assignment plans based on its personnel’s experience rather than any formal system and plans its vehicle routes on the day before the delivery. This study seeks to improve the efficiency and immediacy of logistics companies’ vehicle assignments, understand vehicle route planning, maximize space utilization, and minimize transportation costs. This paper presents both a mathematical programming model and a heuristic algorithm. The algorithm development process comprises four steps: constructing the initial condition, improving transportation cost, reducing customers, and splitting vehicles. The case study company’s transportation costs and vehicle distribution results indicate that the proposed heuristic algorithm can effectively save transportation costs and the time cost involved in delivery route planning.

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