The Vehicle Routing Problem (VRP) is among the principal topics studied in the logistics and supply chain management domain where the goal is to determine the routes an efficient number of vehicles to traverse from a depot to deliver goods and services to numerous customer locations. This thesis seeks to establish VRP in a supply chain system used to distribute supermarket products, which are shipped from a central depot. Using the Clark & Wright Savings Algorithm as the research rationale, the proposed study shall endeavor to realize substantial cost and distance-saving levels on transportation.

This work starts by explaining the problems tackled by the VRP in contemporary supply chain management before embarking on a theoretical discourse on its varieties and importance. Then, a mathematical model of the problem is introduced in detail focusing on its objectives and constraints. Next, the Clark & Wright Savings Algorithm is analyzed from the method point of view, history, and real-use scenarios. Described are implementation methodologies using Excel tools where the algorithm is applied in a given working problem dealing with routing. These results, demonstrated with numerical examples and visualizations, clearly demonstrate the advantages of the algorithm compared with the existing approaches.

The outcomes highlight the gains in delivery efficiency which supports the broader utilization of the algorithm for supply chain platforms as well. The thesis ends with suggestions for further study regarding the development of artificial intelligence improvements as well as considering more constraints of the real world. To the best of the researcher’s knowledge, this work adds to the pool of knowledge by identifying a framework for implementing VRP solutions in retail supply chain environments.