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

Abstract

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.

Vehicle Routing Problem with Transshipment: Mathematical Model and Algorithm

“…Wang et al [34] then extended the problem so that collaboration can be made between multiple periods. A twoechelon location routing problem with simultaneous pickup and delivery was investigated in [33]. In this problem, delivery and pickup demands are unpaired (i.e., not tied to the same parcel), which is different from our problem.…”

“…Another class of VRP that is more complex is the twoechelon, multicenter VRP and its extensions. Some examples of recent works on MCVRP are [32][33][34][35]. e collaborative MCVRP was studied in [32] where collaboration is made among centers by reassignment of customers to centers (through clustering) as well as transshipments among centers.…”

Two‐Layer Location‐Routing Problem Based on Heuristic Hybrid Algorithm

“…Tere are also extensive research studies on LRP in China. Some scholars have established a two-stage planning model to determine the site selection plan [7], customer division, and logistics distribution in terms of recycling and transportation path design [8]; studied multiobjective random LRP in the context of considering a variety of uncertainties [9]; established a three-layer LRP model on the basis of introducing the important parameter of storage cost to the traditional two-layer LRP model; and applied the genetic algorithm to seek a solution [10,11].…”