Delivery Route Optimization: An LCBO Case Study
Exploratory work was carried out for the Liquor Control Board of Ontario (LCBO) to determine if there was potential for LCBO stores and The Beer Store (TBS) locations to be served more efficiently from the four LCBO warehouses in Ontario. Research was also motivated by the fact that the Durham warehouse was operating very close to capacity and scenarios which assigned more stores to the London warehouse were to be explored. Results showed that there appears to be significant potential to develop more efficient routes. The number of routes could be fewer with trucks filled closer to capacity. These routes would be associated with less aggregate distance travelled and therefore less emissions. Aggregate travel time would also be reduced. The results were derived taking traffic congestion patterns into account and detailed reports were developed which showed step-by-step the composition and timing of each route. The analysis was done on the basis of a “typical” two week cycle and thus did not take seasonality into account. For peak periods of the year in particular, alternative routing schemes would be required to accommodate the extra volumes.