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Abstract(s)
Problems arising in the logistics of commercial distribution are complex and involve several players and
decision levels. One of the most important decisions is the design of the routes to distribute the products
in an efficient and inexpensive way but also satisfying marketing objectives such as customer loyalty.
This chapter explores three different distribution routing strategies. The first strategy corresponds to
the classical vehicle routing problem where total distance or cost is minimized. This one is usually an
objective of the Logistics department. The second strategy is a master route strategy with daily adaptations
where customer loyalty is maximized, which is one of the objectives of the Marketing department.
The authors propose a third strategy which takes into account the cross-functional planning between
the Logistics and the Marketing department through a multi-objective model. All strategies are analyzed
in a multi-period scenario. A metaheuristic algorithm based on the Iterated Local Search is proposed
and applied to optimize each strategy. An analysis and comparison of the three strategies is presented
through a computational experiment. The cross-functional planning strategy leads to solutions that put
in practice the coordination between the two functional areas of Marketing and Logistics and better
meet business objectives in general.
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Pedagogical Context
Citation
LOURENÇO, Helena R. ; RIBEIRO Rita - Strategies for an Integrated Distribution Problem. In MONTOYA-TORRES, Jairo R… [et al.] (Ed.) - Hybrid Algorithms for Service, Computing and Manufacturing Systems: Routing, Scheduling and Availability Solutions. Pennsylvania: IGI Global, 2011. E-ISBN: 978-16-13500-87-3. Capter 5, p. 98-121