Abstract
This paper examines a reliable capacitated location–routing problem in which depots are randomly disrupted. Customers whose depots fail must be reinserted into the routes of surviving depots. We present a scenario-based mixed-integer programming model to optimize depot location, outbound delivery routing, and backup plans. We design a metaheuristic algorithm that is based on a maximum-likelihood sampling method, route-reallocation improvement, two-stage neighborhood search and simulated annealing. Numerical tests show that the heuristic is able to generate results that would keep operating costs and failure costs well balanced. Managerial insights on scenario identification, facility deployment and model simplification are drawn.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Transportation Research Part E: Logistics and Transportation Review
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.