Solving a continuous location-routing problem by use of a self-organizing map

Purpose - A variant of Kohonen's algorithm for the self-organizing map (SOM) is used to solve a continuous location-routing problem that can be applied to identify potential sites for subsequent selection by a discrete finite set model. The paper aims to show how the algorithm may be customized to fit the problem structure in a way that allows aspects of location and routing to be integrated into the solution procedure.Design methodology approach - A set of test instances is used to compare the solutions of the neural network to those obtained by sequential approaches based on a savings procedure.Findings - Compared to the results of the sequential approaches, the neural network yields good results.Research limitations implications - Future work may cover the expansion of the neural approach to multi-depot and multi-stage problems. Additionally, application of procedures other than the savings procedure should be evaluated with respect to their potential for further enhancing the solution quality of the sequential approaches.Practical implications - This paper shows that strategic location decisions in practical applications with long-term customer relationships can be taken using simultaneously generated routing information on an operational level.Originality value - The paper provides a new variety of applications for SOM as well as high quality results for the specific type of problem considered.