Transportation plays an important role in supply chain management. To meet customer demands and reduce transportation costs, vehicle needs to be allocated to the optimal route. Vehicle allotment and route optimization are the critical factors for transportation service providers while providing best possible services. In this proposed model, optimization algorithm is developed to address the pain points of transport service providers, which will aid in making critical decisions. The algorithm uses the transactional data of the organization to calculate the loads to be transferred between two hubs/locations. Maximum load to be transferred, available vehicle type and its capacity are used as factors to determine the vehicle allotment. Simultaneously the algorithm allocates the vehicle to a route in such a way that the assigned vehicle is completely utilized. The algorithm is designed to consider cases with load availability less than the full capacity of allocated vehicle between two hubs by assigning touchpoints on the route in order to maximize the capacity utilization of the vehicle.