Incorporating a Reverse Logistics Scheme in a Vehicle Routing Problem with Cross-Docking Network: A Modelling Approach

Vehicle Routing Problem with Reverse Cross-Docking: An Adaptive Large Neighborhood Search Algorithm

“…The VRP-RCD addressed here is slightly different compared to the one of [17] in terms of defining the amount of returned products from customers and outlets. The VRP-RCD [17] considers the amount of customer returned products as a fraction of their demand in the previous cycle, while the amount of outlet returned products was defined as a fraction of the amount of products they received during the delivery process in the previous cycle. However, it might be hard to find the relationship between those two values in practice.…”

“…FoundBestSol is set as False in the beginning (line 4) and every η SA iterations (line 31). Its value will only be True if a new better than Sol * solution is found (lines [17][18][19]. Subsequently, when it is True, then NoImpr is reset as 0 (lines 28-30), otherwise it is increased by one (lines 25-27).…”

“…In reverse logistics, the returned products from customers are collected and sent back to the suppliers [6] for further processes such as break down or re-manufacture process. Due to the advantages of adopting cross-docking in the forward flow, [17] studied the VRPCD in reverse logistics flow, the so-called VRP with reverse cross-docking (VRP-RCD). We then re-visit this VRP-RCD which is suitable for companies with seasonal demand patterns, such as fashion, books, and electronics, and which commercialize the returned (unsold) products through secondary channels (e.g.…”

“…The practice of introducing cross-docking as a viable strategy for handling returned products in the European apparel industry is highlighted by [19]. The main difference with the problem discussed in [6] is that VRP-RCD [17] happens in a four-level supply chain network consisting of suppliers, customers, outlets, and a cross-dock, while [6] only considers a three-level supply chain network: suppliers, customers, and a cross-dock. Furthermore, VRP-RCD [17] considers a multiple product scenario and a situation where some of the supplied products can be defective.…”

“…In this paper, we introduce a two-phase heuristic that employs an adaptive large neighborhood search (ALNS) to solve the VRP-RCD [17]. ALNS was firstly introduced by [13] as the extension of LNS [15].…”