Google OR Tools have dedicated functions and packages for Python, C++, Java and C#. But there is nothing available for R. So, in this post, I aimed to tackle the Capacitated VRP in R, with the help of the nearest neighbor heuristic. The result obtained here is encouraging. That’s why I am sharing it in the blog post. The main aim here is to even better this approach with open-source collaboration. The Github link has also been shared at the end of this post. Before proceeding further, let’s have a look at some of the details of the VRP function:

- The function will accept a list of vehicles with distinctive ids and capacities. It is assumed that the capacity of the vehicles are enough to meet the customer demand for the given day.
- The nearest neighbor heuristic is an example of a greedy algorithm. Which signifies that it will search for the local optimum solution. In order to find the best result, a user defined parameter (either can be the total time of iterations or the number of iterations) is introduced and through these iterations, the best solution can be obtained.
- In order to obtain the best solution, a cost function needs to be introduced. Here the cost function is designed with a simple assumption that the cost for each vehicle depends on the duration for which they have been hired. And if two vehicles are hired for the same duration then the cost will be more for the vehicle with more capacity.
- One advantage of this approach is both homogeneous and heterogenous fleets can be easily accomodated in the model without any effort.
- The model can be built by taking into account either distance or time, whatever the designer may like. For distance the Geodist can be used, for travel time OSRM package can be used or any model built for a specific problem statement can be utilised. In this example travel time has been computed considering the speed to be 9 km/hr.

The code is available here: https://github.com/shibaprasadb/Capacitated_VRP_with_nearest_neighbor