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Companies are eager to have a smart supply chain especially when they have adynamic system. Industry 4.0 is a concept which concentrates on mobility andreal-time integration. Thus, it can be considered as a necessary component thathas to be implemented for a Dynamic Vehicle Routing Problem. The aim of thisresearch is to solve large-scale DVRP (LSDVRP) in which the delivery vehiclesmust serve customer demands from a common depot to minimize transit cost whilenot exceeding the capacity constraint of each vehicle. In LSDVRP, it isdifficult to get an exact solution and the computational time complexity growsexponentially. To find near optimal answers for this problem, a hierarchicalapproach consisting of three stages callled cluster first, route constructionsecond, route improvement third is proposed. The major contribution of thispaper is dealing with large-size real-world problems to decrease thecomputational time complexity. The results confirmed that the proposedmethodology is applicable.

A Three-Stage Algorithm for the Large Scale Dynamic Vehicle Routing Problem with an Industry 4.0 Approach