Research of Oil Product Secondary Distribution Optimization Based on Collaborative Distribution

Abstract During peak seasons, the petrol company's oil supply capacity is insufficient, therefore, with limited trucks, adjusting the distribution quantity of petrol station and formulating an effective distribution route can minimize the total cost and maximize the vehicle utilization. In this paper we observe the extension of the multi-depot half open vehicle routing problem with time windows (MDHOVRPTW) in oil product secondary distribution. Based on the characteristics of secondary distribution and MDHOVRPTW problem, this paper formulates oil distribution model intra-area with distribution quantity and distribution routing as decision variables. A proposed algorithm is applied to solve this model and result compared with the traditional non-cooperative method to verify the effectiveness of collaborative distribution.