Vehicle Routing Problem

Finding the optimal route using ArcGIS
Project Overview
This project focused on optimizing vehicle routing for a regional discount store chain in Oregon, aiming to reduce delivery costs while maintaining service reliability. Using ArcGIS Pro, we analyzed and refined delivery routes from the company’s central distribution center, evaluating strategies such as route consolidation, fleet reduction, and the addition of a second depot.
Key Insights & Findings
Our analysis provided cost estimates and trade-off assessments for each strategy, offering data-driven recommendations to improve efficiency and profitability. This project combined supply chain optimization, cost analysis, and strategic decision-making to enhance last-mile logistics operations.
Recommendations & Impacts

To optimize delivery efficiency and reduce costs, we propose a fleet and routing overhaul. Our strategy includes:

  • Fleet Optimization & Capacity Expansion: Selling underutilized trucks, reducing two full-time driver positions (with one transitioning to part-time), and adding high-capacity storage containers to increase load efficiency.
  • Route Optimization: Implementing an alternating "A/B Day" schedule, reducing daily trips while maintaining inventory flow.
  • Projected Savings: $13,965.63 per week in delivery costs alone, plus additional labor and asset savings.

By restructuring fleet operations and scheduling, this plan improves cost efficiency without major disruptions to the customer.

Methodology & Tools
  • Mapped existing delivery routes and determined current costs
  • Modeled optimized routes using ArcGIS Pro
  • Analyzed fleet utilization and cost trade-offs using Excel
  • Evaluated alternative strategies, including a second depot
  • Assessed business feasibility and operational impact
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