The fundamental design issues that arise in the pickup and delivery system planning are optimizing the system with minimum cost and maximum throughput and service level. This study is concerned with the development of pickup and delivery system with customer responsive service level, DCM(Demand Chain Management). The distribution process and service map are consisted of manufacturing, warehousing, and pickup and delivery. First we formulated the vehicle pickup and delivery problem using GIS-VRP method so as to satisfy the customer service requests. Second, we developed a GUI-type computer program using AVL, automated vehicle location system. The computational results show that the proposed method is very effective on a set of test problems.
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