Optimality issues in postal logistics and transportation network

Abstract

In global competitiveness era, the India Post Service needs some efforts to optimize its transportation network. This attempt by India Post is actually restricted not only by limited transport mode availability and tight delivery time requested by customers, but treated by transport cost increase influenced by global oil prices. In view of this issue, the network optimization for Bangalore city is good place to start. With the diversity, size and growth of city, this would give us a network model which can be implemented anywhere else in country. A route optimization for delivery of mails from central hub to different post offices across the city should appropriately be designed. A linear-programming and heuristic based model was applied to determine optimal set of transportation route and mode capacity. A distance comparison with existing routes network is then conducted to measure cost sensitivity as well as to determine a level of the capacity selection. This investigation found some efficient consolidated simultaneous routes in the primary network from one Postal-Mail Processing Centers (PPCs) depot to various post offices in city, which have three objectives or criteria of minimum cost and duration and maximum capacity utilization. Due to requirement of initial investment for any change in vehicles may have put burden on finances of post office therefore available vehicle fleet with Mail motor services was major transportation mode being used in model. Need