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Location routing for small package shippers with subcontracting options

Author

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  • Stenger, Andreas
  • Schneider, Michael
  • Schwind, Michael
  • Vigo, Daniele

Abstract

We present a location routing model that considers the requirements of real-world small package shippers. It integrates the choice between self-operating and subcontracting a depot. Furthermore, we consider the relocation costs which occur when established networks are restructured. We present a hybrid heuristic solution method based on simulated annealing for the location phase and variable neighborhood search for the routing. Through extensive numerical studies we show the competitiveness of our solution method on standard benchmarks and analyze the influence of subcontractors on the network design of a small package shipper.

Suggested Citation

  • Stenger, Andreas & Schneider, Michael & Schwind, Michael & Vigo, Daniele, 2012. "Location routing for small package shippers with subcontracting options," International Journal of Production Economics, Elsevier, vol. 140(2), pages 702-712.
    • Handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:702-712
    DOI: 10.1016/j.ijpe.2011.11.014
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    2. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2021. "An evaluation of three DoE-guided meta-heuristic-based solution methods for a three-echelon sustainable distribution network," Annals of Operations Research, Springer, vol. 296(1), pages 421-469, January.
    3. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
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    8. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2020. "Sustainable distribution system design: a two-phase DoE-guided meta-heuristic solution approach for a three-echelon bi-objective AHP-integrated location-routing model," Annals of Operations Research, Springer, vol. 290(1), pages 191-222, July.
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    11. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
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