Heuristic solutions to multi-depot location-routing problems
This paper presents a method for solving the multi-depot location-routing problem (MDLRP). Since several unrealistic assumptions, such as homogeneous fleet type and unlimited number of available vehicles, are typically made concerning this problem, a mathematical formulation is given in which these assumptions are relaxed. Since the inherent complexity of the LRP problem makes it impossible to solve the problem on a larger scale, the original problem is divided into two sub-problems, i.e., the location-allocation problem, and the general vehicle routing problem, respectively. Each sub-problem is then solved in a sequential and iterative manner by the simulated annealing algorithm embedded in the general framework for the problem-solving procedure. Test problems from the literature and newly created problems are used to test the proposed method. The results indicate that this method performs well in terms of the solution quality and run time consumed. In addition, the setting of parameters throughout the solution procedure for obtaining quick and favorable solutions is also suggested. In many logistic environments managers must make decisions such as location for distribution centers (DC), allocation of customers to each service area, and transportation plans connecting customers. The location-routing problems (LRPs) are, hence, defined to find the optimal number and locations of the DCs, simultaneously with the vehicle schedules and distribution routes so as to minimize the total system costs. This paper proposes a decomposition-based method for solving the LRP with multiple depots, multiple fleet types, and limited number of vehicles for each different vehicle type. The solution procedure developed is very straightforward conceptually, and the results obtained are comparable with other heuristic methods. In addition, the setting of parameters throughout the solution procedure for obtaining quick and favorable solutions is also suggested.
location-routing location-allocation vehicle routing simulated annealing