Vehicle Routing Problem

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Warehouse Inventory Control is a process of managing inventories in a manufacturing warehouse. Warehouse Inventory Control is essential to a manufacturer's ability to optimize operation and realize cost savings. In a paperless society there is an increasing emphasis on doing business globally while decreasing the environmental impact of manufacturing. In order to be successful in this effort manufacturers need to effectively manage inventories to meet the strategic and operational requirements of the companies they serve.

Vehicle Routing Problem occurs when warehouse owners consider a common model in which there are usually several suppliers and clients in a single warehouse. With such a common model, the problem regarding the most efficient, least labor intensive route between the first inbound and last-mile routes is more complicated than most traditional vehicle routing difficulties (VRPs). With so many vehicles and so much data, how do you keep up? And what about keeping it all in one place? The answer is that it is made difficult by the fact that there is no single route throughout the enterprise. Instead of considering each of these routes individually, a single Vehicle Routing Problem occurs when multiple vehicles are being used to bring different parts of the production or supply process to the final destination.

Vehicle Routing Problem can occur when trucks carrying cargo in various directions try to connect to the same common carrier route. This is a common occurrence in the fast-paced world of supply chain management. One way to avoid this type of warehouse inventory control problem is to pre-allocate service stations at the beginning of the delivery process. The ability to pre-allocate route and service station service stations will also minimize the potential for vehicle routing mistakes. In addition it will help a manufacturer to reduce costs associated with rerouting routes, route deviations and other service station errors and oversight.

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