A Multi-Objective Model for Location-Routing Problem Considering Minimal Risk and Maximal Demand Covering

Location, routing and allocation decisions in supply chain management philosophy is undoubtedly one of the most important issues have very effect on the supply chain cost reduction and customer satisfaction. This paper presents an integrated approach to the distribution network. The objective functions of the proposed mathematical model consist of minimizing the total costs associated with transportation and warehouse rental costs and also minimize the risk of the system. The model has high computational complexity and the exact method of solving it is not possible in a reasonable time. To solve the proposed model a multi-objective meta-heuristic algorithm which, known as the objective harmony search algorithm is presented. To demonstrate the effectiveness and efficiency of the proposed algorithm in solving the model, algorithm parameters are adjusted in the best possible rates using the Taguchi method. Then a random sample of the issues generated and the performance of the proposed algorithm comparing with NSGA-ǁ and NRGA are evaluated