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Research on the Collection Routes of Logistics Service Supplier

Logistics Service Suppliers are expected to make a reasonable collection routes to reduce service cost and improve service level. In this paper, the Vehicle Scheduling and Routing model is proposed to choose optimal collection routes and to minimize the total cost which is composed by transport cost, overtime cost, punitive fine and inventory cost. A modified Saving Algorithm which takes the total cost as saving value and Quadtree Algorithm are derived to solve this problem. The numerical example shows that the solution and algorithm mentioned above are feasible and effective.