Optimization for supply chain management-SCM using vehicle routing problem-VRP and an application in FMCG industry

Distribution management is an operational level activity for supply chain management.The most important model in distribution management is the vehicle routing problem. Avehicle routing problem involves determining for each vehicle, which of the customerswill be visited and what route will be followed so that the total delivery cost isminimised. In today?s business environment, the task of optimal routing a fleet ofvehicles is becoming an obvious necessity.FMCG is an acronym for Fast Moving Consumer Goods, means `things you buy on aregular basis at places like your local supermarket?. In the FMCG industry on any givenday, many delivery drivers or route sales representatives are on the road makingdeliveries to the customers. Vehicle routing in this industry is a very large problem anddifficult to solve manually.In this thesis we do a vehicle routing application in FMCG industry. Territory Planner isused to optimize the delivery routes.