Optimization Models for Operations - Coca-Cola Enterprises Optimizes Vehicle Routes

                                                                                         Name: Mohammad Adeel

45-854 – Optimization Models for Operations

Reading 1: Coca-Cola Enterprises Optimizes Vehicle Routes for Efficient Product Delivery, Interfaces 2008.

1. Briefly describe the problem addressed in this paper. What are the project goals?

Coca-Cola Enterprise (CCE) is world’s largest distributor of Coca-Cola’s products. CCE distributed bottled and canned beverages from bottling plants to the distribution centers and from distribution centers to final retail outlets. The problem addressed in this paper discusses optimizing distribution of products from 430 distribution centers to 2.4 million retail outlets. The enormous growth and the competitive nature of the beverage industry make it necessary to optimize product delivery. The goals of the project were to: 1) provide world class customer service; 2)optimize labor and assets; 3)reduced natural resource consumption; 4)provide employees with productive but realistic working day.

1. The project considers a particular variation of the vehicle-routing problem (VRP). What are the differences between the paper version and the standard VRP problem studied in class? What is the objective of this new version?

1. Four heuristic components were developed to solve the given VRP problem. Briefly describe how each component works and their purpose in the overall solution framework. In particular, why the clustering function for visual attractiveness is important, given that the solution cost could actually increase by using it?

1. What approach did the company take to implement the new dispatch process across its multiple divisions? What lessons did they learn during the course of this plan?

1. Mention some of the indicators that attest the success of the project.

1. What is your overall evaluation of this project?