Vehicle Routing Solution Reduces Transportation Costs for Organic Farmers Serving the Domestic Market in Turkey
A. Yonca Demir, Mert C. Demir

Abstract
In this paper, our goal is to overcome one of the barriers impeding the development of the domestic organic market, specifically to reduce the transportation costs incurred by the farmers shipping organic produce to the largest organic market in Istanbul. The sample data includes 62 fresh produce suppliers. To design an efficient transportation system, we propose a vehicle routing model. We formulate the problem using GAMS modelling system and solve it with an integer programming solver in a reasonable amount of time. The results, reducing unit transportation costs by almost 50%, show the economic impact of a collective transportation arrangement.

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