Collection of municipal solid waste is one of the most important elements of municipal waste management and requires maximum fund allocated for waste management. The cost of collection and transportation can be reduced in comparison with the present scenario if the solid waste collection bins are located at suitable places so that the collection routes become minimum. This study presents a suitable solid waste collection bin allocation method at appropriate places with uniform distance and easily accessible location so that the collection vehicle routes become minimum for the city Dhanbad, India. The network analyst tool set available in ArcGIS was used to find the optimised route for solid waste collection considering all the required parameters for solid waste collection efficiently. These parameters include the positions of solid waste collection bins, the road network, the population density, waste collection schedules, truck capacities and their characteristics. The present study also demonstrates the significant cost reductions that can be obtained compared with the current practices in the study area. The vehicle routing problem solver tool of ArcGIS was used to identify the cost-effective scenario for waste collection, to estimate its running costs and to simulate its application considering both travel time and travel distance simultaneously.