Optimization of drugs delivery routes through location routing problem (Lrp): A case study

The location-routing problem (LRP) plays a critical role in logistics system optimization where companies need to set up a proper design of operation strategies to fulfil the demand for product delivery. This paper analysed an efficient products distribution of a delivery drugs Italian company through the development of LRP analysis. Thus, due to a reduction of company sales volume, a delivery routes re-planning was investigated moving from a logistics plan that involved the use of the main warehouse with replenishment at intermediate one to a new configuration with only the main warehouse. The analysis is based on the identification of the ideal location of the main warehouse by optimizing the delivery routes of goods to meet customers’ demands. Optimal solutions are found according to the integration of the facility location and the vehicle-routing problems (VRP) aimed at minimizing the total logistic system cost