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Transportation Network Analysis with Graph Theory 🚚

Use the graph theory to optimize the road transportation network of a retail company

Objective

Build graphical representations of a road transportation network to support network optimization studies.

Introduction

For a retailer, road transportation between the distribution centre and stores represents a major part of the logistics costs.  Companies often conduct route planning optimization studies to reduce these costs and improve the efficiency of their network.

It requires collaboration between continuous improvement engineers and the transportation teams that manage operations daily.

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Article

In this Article, we will use Graph Theory to design visual representations of a transportation network to support this collaboration and facilitate solution design.

Youtube Video

Click on the image below to access a full tutorial video to understand the concept behind this solution

Explainer Video Link

Scenario

As a continuous improvement engineer of a retail company, you are in charge of reengineering warehousing and transportation operations. In your scope, you have a major distribution centre located in Shanghai (China) that delivers 54 hypermarkets.

Objective

Your objective is to reduce the total cost of transportation.

Insights: Cost per Ton

The objective is to design a new transportation plan to increase the average size of trucks by delivering more stores per route.

Solution: Graph Theory

A graph is a structure that contains nodes (stores), and each related pair of nodes is called an edge.

Further Analysis

With these graphs, you can challenge the current routing and discuss optimization levers with the transportation teams.

Code

This repository code you will find all the code used to explain the concepts presented in the article.

About me 🤓

Senior Supply Chain and Data Science consultant with international experience working on Logistics and Transportation operations.
For consulting or advising on analytics and sustainable supply chain transformation, feel free to contact me via Logigreen Consulting. \

Please have a look at my personal blog: Personal Website