Heterogeneous Vehicle Routing Problem with Simultaneous Pickup and Delivery to Optimize Last Mile Deliveries of Sustainable Retail

Abstract

Transportation, as one of many elements of logistics, accounts for 30-60% of the total logistics cost, making it essential to be arranged as efficient as possible as it contributes to greater competition in the market, greater economies of scale, and reduced prices of goods. One initiative to achieve transportation efficiency is the Vehicle Routing Problem. PT Siklus. The Vehicle Routing Problem is carried out in this research for PT Siklus Refil Indonesia or Siklus, an Indonesian-based sustainable retail startup, which
mission is to reduce plastic wastes. Siklus offers a unique shopping experience, in which once the order is delivered to the customers, they can
store used containers or waste, which will then Siklus collect and cultivate for greater good. However, due to the last mile delivery activities,
maintaining the logistics cost to be minimum has been a never-ending challenge to overcome. Therefore, the Heterogeneous Vehicle Routing
Problem with Simultaneous Pickup and Delivery and Time Windows is developed, striving to optimize the last mile deliveries of Siklus, hence
minimum total cost is achieved. Based on the results, it is found that the proposed model leads to cost saving as much as 31.28% from the existing condition.