A survey of the standard location-routing problem

Schneider, Michael; Drexl, Michael

doi:10.1007/s10479-017-2509-0

Cited by 111 publications

(59 citation statements)

References 82 publications

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“…e issue of complexity in supply chains has been explored from a number of perspectives [7][8][9][10][11][12]. e literature on these problems, generally divided into the locationrouting problem (LRP) [13][14][15] and the warehouse location problem (WLP) [16][17][18], provides a range of proposed solutions. For both the LRP and the WLP, there is an objective function to be minimized.…”

Section: Introductionmentioning

confidence: 99%

Freight Time and Cost Optimization in Complex Logistics Networks

et al. 2020

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The complexity of providing timely and cost-effective distribution of finished goods from industrial facilities to customers makes effective operational coordination difficult, yet effectiveness is crucial for maintaining customer service levels and sustaining a business. Logistics planning becomes increasingly complex with growing numbers of customers, varied geographical locations, the uncertainty of future orders, and sometimes extreme competitive pressure to reduce inventory costs. Linear optimization methods become cumbersome or intractable due to the large number of variables and nonlinear dependencies involved. Here, we develop a complex systems approach to optimizing logistics networks based upon dimensional reduction methods and apply our approach to a case study of a manufacturing company. In order to characterize the complexity in customer behavior, we define a “customer space” in which individual customer behavior is described by only the two most relevant dimensions: the distance to production facilities over current transportation routes and the customer’s demand frequency. These dimensions provide essential insight into the domain of effective strategies for customers. We then identify the optimal delivery strategy for each customer by constructing a detailed model of costs of transportation and temporary storage in a set of specified external warehouses. In addition, using customer logistics and the k-means algorithm, we propose additional warehouse locations. For the case study, our method forecasts 10.5% savings on yearly transportation costs and an additional 4.6% savings with three new warehouses.

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Section: Introductionmentioning

confidence: 99%

Freight Time and Cost Optimization in Complex Logistics Networks

et al. 2020

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“…While the numerical experiment was conducted in small instances that can be solved to optimality, an interesting avenue for future research is to explore LRGs where the approximate solutions, instead of the optimal ones, are taken into account. In fact, large-scale instances often occurring in practice are commonly solved with heuristic approaches (Schneider and Drexl, 2017). It is worthwhile to investigate whether different solution approaches preserve the same properties.…”

Section: Discussionmentioning

confidence: 99%

“…Perl (1987) and Salhi and Rand (1989) pointed out that tackling the decisions on facility location and vehicle routing separately may lead to suboptimal solutions. With the aim to connect these problems, the LRP was addressed by a large stream of literature since then, as documented in surveys by Nagy and Salhi (2007), Prodhon and Prins (2014), Drexl and Schneider (2015), and Schneider and Drexl (2017). Among others, these surveys discuss different variants of the LRP such as, for example, the standard LRP, the capacitated location-routing problem (LRP-C), and the location-routing problem with a limited number of facilities (LRP-L).…”

Section: Literature Reviewmentioning

confidence: 99%

“…It has early been recognized that tackling these decision problems separately may lead to suboptimal solutions (Perl, 1987;Salhi and Rand, 1989). Reviews by Prodhon and Prins (2014), Drexl and Schneider (2015), and Schneider and Drexl (2017) give account of a broad range of applications as well as a considerable progress in solution methods for LRPs. Recent emergence of dynamic on-demand warehousing (Sinha, 2016) emphasizes the potential in applicability even further as it introduces facility location decisions of an operational (short-term) nature.…”

Section: Introductionmentioning

confidence: 99%

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Cooperative game‐theoretic features of cost sharing in location‐routing

Osicka

Guajardo

Oost

2019

Int Trans Operational Res

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While the interest in both collaborative logistics and location-routing has grown considerably, horizontal cooperation in location-routing problems remains fairly unattended. This article studies several variants of the location-routing problem using a cooperative game-theoretic framework. The authors derive characteristics in terms of subadditivity, convexity, and non-emptiness of the core. Moreover, for some of the game variants, it is shown that for facility opening costs substantially larger than the costs associated with routing, the core is always nonempty. The theoretical results are supported by numerical experiments aimed at illustrating the properties and deriving insights. Among others, it is observed that, while in general it is not possible to guarantee core allocations, in a huge majority of cases the core is nonempty.

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“…Watson-Gandy and Dohrn [9] were the rst to consider customer visits in locating depots, and many studies on LRP followed. A survey of the research on the standard LRP can be found in [10][11][12].…”

Section: Studies On Lrpmentioning

confidence: 99%

Presenting a Multi-Start Hybrid Heuristic for Solving the Problem of Two-Echelon Location-Routing Problem with Simultaneous Pickup and Delivery (2E-LRPSPD)

Fan

et al. 2020

Journal of Advanced Transportation

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This study proposes a three-index flow-based mixed integer formulation to solve a two-echelon location routing problem with simultaneous pickup and delivery. In this formulation, pickup and delivery demands can be addressed using the same vehicle in each echelon of the network to reduce costs and increase logistics efficiency. We solve such NP-hard problem by developing a multistart hybrid heuristic with path relinking (MHH-PR) which is composed of local search and a variable neighbourhood descent algorithm. In the algorithm, three constructive heuristics are applied to generate diversified initial solutions, and path relinking is introduced for intensification and postoptimisation. Results indicate that MHH-PR can reduce the gap between the near optimal and global optimal solutions by 1%-2%. The proposed algorithm significantly improves computational efficiency by reducing the computational time of more than 10 min for existing cases involving 20 nodes to less than 10 s.

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A survey of the standard location-routing problem

Cited by 111 publications

References 82 publications

Freight Time and Cost Optimization in Complex Logistics Networks

Freight Time and Cost Optimization in Complex Logistics Networks

Cooperative game‐theoretic features of cost sharing in location‐routing

Presenting a Multi-Start Hybrid Heuristic for Solving the Problem of Two-Echelon Location-Routing Problem with Simultaneous Pickup and Delivery (2E-LRPSPD)

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