The location routing problem with facility sizing decisions

The location routing problem (LRP) integrates operational decisions on vehicle routing operations with strategic decisions on the location of the facilities or depots from which the distribution will take place. In other words, it combines the well‐known vehicle routing problem (VRP) with the facili...

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Veröffentlicht in:International transactions in operational research 2023-03, Vol.30 (2), p.915-945
Hauptverfasser: Tordecilla, Rafael D., Montoya‐Torres, Jairo R., Quintero‐Araujo, Carlos L., Panadero, Javier, Juan, Angel A.
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container_issue 2
container_start_page 915
container_title International transactions in operational research
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creator Tordecilla, Rafael D.
Montoya‐Torres, Jairo R.
Quintero‐Araujo, Carlos L.
Panadero, Javier
Juan, Angel A.
description The location routing problem (LRP) integrates operational decisions on vehicle routing operations with strategic decisions on the location of the facilities or depots from which the distribution will take place. In other words, it combines the well‐known vehicle routing problem (VRP) with the facility location problem (FLP). Hence, the LRP is an NP‐hard combinatorial optimization problem, which justifies the use of metaheuristic approaches whenever large‐scale instances need to be solved. In this paper, we explore a realistic version of the LRP in which facilities of different capacities are considered, i.e., the manager has to consider not only the location but also the size of the facilities to open. In order to tackle this optimization problem, three mixed‐integer linear formulations are proposed and compared. As expected, they have been proved to be cost‐ and time‐ inefficient. Hence, a biased‐randomized iterated local search algorithm is proposed. Classical instances for the LRP with homogeneous facilities are naturally extended to test the performance of our approach.
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source Wiley Online Library - AutoHoldings Journals; EBSCOhost Business Source Complete
subjects biased randomization
Combinatorial analysis
Decisions
heterogeneous facilities
Heuristic methods
location routing problem
metaheuristics
Operations research
Optimization
Route planning
Search algorithms
Site selection
Vehicle routing
title The location routing problem with facility sizing decisions
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