A Location-Routing Problem with Market Competition for Designing Inland Port Urban Delivery Network

Abstract

Wang, X.F. and Yang, F., 2020. A location-routing problem with market competition for designing inland port urban delivery network. In: Guido Aldana, P.A. and Kantamaneni, K. (eds.), Advances in Water Resources, Coastal Management, and Marine Science Technology. Journal of Coastal Research, Special Issue No. 104, pp. 333–338. Coconut Creek (Florida), ISSN 0749-0208.To effectively design an inland port urban delivery network for a logistics company, a nonlinear integer programming model for the location-routing problem with market competition (LRPMC) is presented. This problem seeks to construct an efficient logistics network to provide flexible and high quality delivery service for customers, so as to minimize operation cost, and maximize market shares. The logistics company can simultaneously provide two flexible delivery services: home delivery and customer pickup, and its market shares captured can be deduced from the patron behavior in competitive market. To solve the model, a hybrid heuristic algorithm combining genetic algorithm and local search is proposed. Based on the computational performances of real-world instance, the results show the proposed model formulation and heuristic approach are effective.