METAHEURISTIC APPROACH FOR THE MULTI-DEPOT VEHICLE ROUTING PROBLEM

Abstract

Distribution logistics comprises all activities related to the provision of finished products and merchandise to a customer. The focal point of distribution logistics is the shipment of goods from the manufacturer to the consumer. The products can be delivered to a customer directly either from the production facility or from the trader's stock located close to the production site or, probably, via additional regional distribution warehouses. These kinds of distribution logistics are mathematically represented as a vehicle routing problem (VRP), a well-known nondeterministic polynomial time (NP)-hard problem of operations research. VRP is more suited for applications having one warehouse. In reality, however, many companies and industries possess more than one distribution warehouse. These kinds of problems can be solved with an extension of VRP called multi-depot VRP (MDVRP). MDVRP is an NP-hard and combinatorial optimization problem. MDVRP is an important and challenging problem in logistics management. It can be solved using a search algorithm or metaheuristic and can be viewed as searching for the best element in a set of discrete items. In this article, cluster first and route second methodology is adapted and metaheuristics genetic algorithms (GA) and particle swarm optimization (PSO) are used to solve MDVRP. A hybrid particle swarm optimization (HPSO) for solving MDVRP is also proposed. In HPSO, the initial particles are generated based on the k-means clustering and nearest neighbor heuristic (NNH). The particles are decoded into clusters and multiple routes are generated within the clusters. The 2-opt local search heuristic is used for optimizing the routes obtained; then the results are compared with GA and PSO for randomly generated problem instances. The home delivery pharmacy program and waste-collection problem are considered as case studies in this paper. The algorithm is implemented using MATLAB 7.0.1.