Logistics Sub-Sector Land Transportation

Participant Handbook 
54 
What is Route Scheduling? 
Route scheduling can be defined as the process of assigning an arrival and service time for each 
stop, with drivers being assigned shifts who would strictly adhere to their hours of work. 
The main purpose of both routing and route scheduling is to reduce costs, such as mileage and 
vehicle capital costs. (Both owning & operating costs) 
For example, on a school bus, the objective of routing and route scheduling could be to reduce the 
total number of student-minutes on the bus. For food delivery, the aim is to deliver within the 
period that you promised to your customers. Every industry has different goals. 
Fig 3.1.2. Route Scheduling
What is Route Optimization? 
Route optimization is defined as the process of planning one or multiple routes, with the sole 
purpose of minimizing overall transportation costs while achieving the highest possible efficiency 
under a set of given operating constraints and considering other alternative routes which share 
the same goal. 
Thus, route optimization in simple terms is the process of determining the most cost-efficient route.
It is more complicated than merely locating the smallest path between two points. It requires to 
include all relevant factors such as the number and location of all the required stops en route. 

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55 
Land Transportation 
Associate 
Fig 3.1.3. Route Optimization
Notes 
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