Solving MDVRP using two-step clustering: A case study of pharmaceutical distribution in Tehran

Articles in Press

Authors

1 Department of Industrial Engineering & Management Systems, Amirkabir University of Technology (Tehran Polytechnic), 424 Hafez Ave., Tehran, Iran

2 Department of Industrial Engineering & Management Systems, Amirkabir University of Technology (Tehran Polytechnic), 424 Hafez Ave., Tehran, Iran

3 Industrial Engineering Department, Sharif University of Technology, 11155-1639 Tehran, Iran

10.22059/aie.2024.363992.1879

Abstract

Recently, the healthcare sector has faced notable difficulties characterized by limited funds and fierce rivalry. These factors have negatively affected the supply chains of hospitals, leading to problems like decreased budgets, insufficient workforce, and logistical challenges. This study presents a novel two-step clustering method to address a multi-depot vehicle routing problem (MDVRP) in healthcare logistics, focusing on optimizing the delivery of pharmaceutical supplies to hospital pharmacies in Tehran. The proposed approach begins by utilizing the K-means algorithm to identify distribution centers in the first step. Subsequently, in the second step, the K-means clustering algorithm (incorporating vehicle capacity and demand values) is employed for each distribution center to allocate demand points that each vehicle must serve. The routing for each vehicle is then determined by solving the traveling salesman problem. By optimizing the number of distribution centers using the silhouette score, which yielded 0.3567 for four centers, the study demonstrates that Tehran hospitals' needs can be efficiently met by deploying five vehicles from four strategically located distribution centers, covering a total travel distance of 119.68 km. Comparative analysis with two alternative methods showcases the superiority of the proposed method in minimizing the objective function, achieving a remarkable 14% improvement in reducing the total travel distance to fulfill demand. The approach not only aids in identifying suitable locations for establishing new distribution centers but also facilitates the development of effective routing plans for pharmaceutical distribution. This, in turn, contributes to cost reduction and enhanced service quality within the healthcare logistics sector.

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Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 26 June 2024

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