Collaborative multicenter reverse logistics network design with dynamic customer demands

Abstract

The vehicle routing problem for waste recycling has been created to improve resource utilization and reduce environmental pollution as a result of the rapid consumption of natural resources and the negative impact of waste on the environment. This study investigates a collaborative multicenter vehicle routing problem with time windows and dynamic customer demands. The collaboration among logistics facilities is an effective mechanism to reduce the number of vehicles and improve resource utilization in a multicenter reverse logistics network. A multi-objective mathematical programming model is proposed to coordinate static and dynamic customer demands while minimizing the total operating cost, the number of vehicles, and the total waiting time. A hybrid heuristic algorithm comprising an improved k-medoids clustering algorithm and an extended reference point-based non-dominated genetic algorithm- III, is designed to solve the multi-objective optimization model. The clustering algorithm is implemented to reduce the network complexity. The extended reference point-based non-dominated genetic algorithm- III with a dynamic insertion strategy is proposed to adjust service routes for dynamic customer demands and find the Pareto optimal solution for the multi-objective optimization model. The performance of the proposed algorithm is evaluated, and results suggest that the extended reference point-based non-dominated genetic algorithm- III has superior solutions in solving the collaborative multicenter vehicle routing problem with time windows and dynamic customer demands compared with other algorithms. The cost savings resulting from optimization are fairly distributed among participants in a collaborative alliance via the minimum cost remaining savings and principle of strictly monotonic path selection. The proposed methods are applied in a case study of a realistic reverse logistics network in Chongqing City, China. Different service periods and optimization strategies are discussed and compared to verify the effectiveness of the proposed solution methods. The optimization results indicate that the collaborative mechanism and dynamic insertion strategy can improve resource utilization and transportation efficiency and contribute to a sustainable urban logistics transportation system.