Logistics optimization and routing planning: a case study of a city's garbage collection operation

Organizations in both private and public business have been using logistics optimization methods to reduce cost, increase productivity and maximize customer satisfaction. Generally, it is applied in solving complex problems.... [ view full abstract ]

Organizations in both private and public business have been using logistics optimization methods to reduce cost, increase productivity and maximize customer satisfaction. Generally, it is applied in solving complex problems. Logistics optimization in routing planning and scheduling can create methods to allow the operation to achieve optimal performance levels. Governmental entities and organizations such as state and local governments have a history of not being as productive as the private sector because many cities logistic operations are not using optimization methods to increase performance.
After a brief introduction and literature review in logistics optimization, routing and scheduling planning, this paper focuses on a case study that takes place in a small to medium sized municipality in the southern United States, and studies the garbage collection operation. The City studied has been growing in the last few years, and its static routing system does not seem to be the best method for garbage collection. While optimization processes seem as important to cities logistics operations as other businesses, there are some challenging constraints as lack reliable historical data and constant political interference that are complex challenges to optimization. The City is divided into five regions and each one is serviced one day of the work week. Through data collection from a GPS system, data analysis, industry benchmark and literature review, this study case aims to provide both an analysis of the current method, as a proposal manual routing planning method to its optimal level, finding routes to minimize both time and travelled mileage. This study also explores maximizing operational outcomes while minimizing the need for complex routing techniques or expensive computerized routing and maintenance. The expected result will be lower cost, higher performance, key performance indicators and citizen’s satisfaction.