Two-Echelon Location-Routing Problem with Time Windows and Transportation Resource Sharing

Abstract

In this work, a two-echelon location-routing problem with time windows and transportation resource sharing (2E-LRPTWTRS) is solved by selecting facility locations and optimizing two-echelon vehicle routes. The optimal solutions improve the efficiency of a logistics network based on the geographical distribution and service time windows of logistics facilities and customers. Furthermore, resource utilization is maximized by enabling resource sharing strategies within and among different logistics facilities simultaneously. The 2E-LRPTWTRS is formulated as a biobjective optimization model, and obtaining the smallest number of required delivery vehicles and the minimum total operating cost are the two objective functions. A two-stage hybrid algorithm composed of k-means clustering and extended multiobjective particle swarm optimization algorithm is proposed for 2E-LRPTWTRS optimization. A self-adaptive mechanism of flight parameters is introduced and adopted during the iterative process to balance the evolution of particles and improve the efficiency of the two-stage hybrid algorithm. Moreover, 20 small-scale instances are used for an algorithm comparison with multiobjective genetic algorithm and nondominated sorting genetic algorithm-II, and the solutions demonstrate the superiority of the proposed algorithm in optimizing logistics networks. The proposed optimization model and hybrid algorithm are tested by employing a real-world case of 2E-LRPTWTRS in Chongqing, China, and the optimization results verify the positive role of the developed model and algorithm in improving logistics efficiency, reducing operating cost, and saving transportation resources in the operations of two-echelon logistics networks.