Abstract

This paper introduces a new heuristic method to solve the location-routing problem (LRP). Facility location problem (FLP) and vehicle routing problem (VRP) are considered simultaneously in the LRP. The problem selects the location of depot(s) to be established among a set of potential sites. On the other hand, the allocation of customers to depot(s), and the distribution routes between the customers and depot(s) are decided, too. In this paper, capacitated LRP (CLRP) is considered, in which the vehicles and the depots have a predefined capacity to serve the customers. A greedy clustering method (GCM-LRP) in four phases is proposed. The method clusters the customers using a greedy search algorithm, selects the most appropriate location of depot(s), allocates the clusters to the depot(s), and finally sets routes between the depot(s) and customers using ant colony system (ACS). The numerical experiments on a set of benchmark instances show the efficiency of the proposed method. Key words: Capacitated location-routing problem, greedy clustering method, greedy search algorithm, ant colony system.

Highlights

  • Ever increasing demand of customers for less waiting time to receive their desired products, and competitive prices between the producers, make logistics the main problem in supply chain management

  • The solutions obtained by Simulated Annealing (SA)-ant colony system (ACS) (Bouhafs et al, 2006), GRASP (Prins et al, 2006), LRGTS (Prins et al, 2007), the clustering based heuristic (CH) (Barreto et al, 2007) and HybPSO-location-routing problem (LRP) (Marinakis and Marinaki, 2008b) are shown in columns 4 to 8

  • A new heuristic method for the capacitated locationrouting problem is presented in this paper

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Summary

INTRODUCTION

Ever increasing demand of customers for less waiting time to receive their desired products, and competitive prices between the producers, make logistics the main problem in supply chain management. The LRP is defined as a facility location problem (FLP) that solves the vehicle routing problem (VRP), simultaneously. In capacitated LRP (CLRP), the problem is constrained with the vehicles and the depot(s) capacities to supply the customers. The unitary cost of distribution system and the capacity of the vehicles are considered in solving the problem too. The objectives are to determine the location of depots, and a set of customers to be served by each depot as well as the distribution routes. This paper proposes a greedy clustering method (GCM-LRP) to solve the CLRP. The third step allocates the clusters to depots, and ant colony system (ACS) is applied to set up the best routes between the depot(s) and the assigned customers

LITERATURE REVIEW AND PROBLEM DEFINITION
COMPUTATIONAL RESULTS
CONCLUSION AND FUTURE RESEARCH
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