A Study on Vehicle Routing Problems Considering IoT based Real Time Information Kangbae Lee 1 , Doo-hwan Kim 2 , Hyung Rim Choi 3 , Byung Kwon Park 4 , Min Je Cho 5 , Dong Yeon Kang 6 , Seong Ho Park 7 and Sang Ha Sung 8 1, 2, 3, 4, 5, 6, 7, 8 225, Gudeok-ro, Seo-gu, Busan, Department of Management Information Systems, Dong-A University, Republic of Korea 1 kanglee@donga.ac.kr, 2 kdhblack@donga.ac.kr, 3 hrchoi@dau.ac.kr, 4 bpark@dau.ac.kr, 5 mjcho@dau.ac.kr, 6 ghkxk01@donga.ac.kr, 7 psh2975@naver.com, 8 gbgb7777@naver.com Abstract. With the recent increasing demand of freight, parcel delivery service, and product distribution, the quantity of supply that a company needs to handle is also increasing. The travel time between the demand points in the city is greatly affected by the complicated road conditions and the changing external environment in real time. In the previous researches, the vehicle routing problem is to define a route based on the distance between the demand points, the travel time, and the determined demand. This study propose a vehicle routing problem considering the vehicle location, vehicle condition information and dynamic demand forecasting by the Internet of Things (IoT) equipment attached to the vehicle. Keywords: Internet of Things, Vehicle Routing Problem, Fleet Management 1 Introduction With the recent increasing demand of freight, parcel delivery service, and product distribution, the quantity of supply that a company needs to handle is also increasing. Due to the external environment factors such as the complicated road conditions and the increased vehicles, it is getting harder to deliver products to the demand points within the desired time. Companies have built and utilized logistics systems in order to keep appointments with customers and reduce logistics cost logistics system. However, the most of them have been planning of vehicle routing based on their heuristic know-hows and historical data of the past. Because of the dynamic tidal flow of traffic such as downtown traffic, depending on the existing heuristic know-hows can not only increase the logistics cost but also lose customer confidence. Currently, the IoT technology has been being applied to diverse industries, the things come with communication module that can realize network communication in real time. If applying the IoT technology that generates data in real time, effective 1 First author 2 Corresponding author Advanced Science and Technology Letters Vol.140 (GST 2016), pp.267-270 http://dx.doi.org/10.14257/astl.2016.140.51 ISSN: 2287-1233 ASTL Copyright © 2016 SERSC