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A warehouse location-routing problem

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  • Perl, Jossef
  • Daskin, Mark S.
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    Abstract

    The interdependence between distribution center location and vehicle routing has been recognized by both academics and practitioners. However, only few attempts have been made to incorporate routing in location analysis. This paper defines the Warehouse Location-Routing Problem (WLRP) as one of simultaneously solving the DC location and vehicle routing problems. We present a mixed integer programming formulation of the WLRP. Based on this formulation, it can be seen that the WLRP is a generalization of well-known and difficult location and routing problems, such as the Location-Allocation Problem and the Multi-depot Vehicle Dispatch Problem. It is therefore a large and complex problem which cannot be solved using existing mixed-integer programming techniques. We present a heuristic solution method for the WLRP, based on decomposing the problem into three subproblems. The proposed method solves the subproblems in a sequential manner while accounting for the dependence between them. We discuss a large-scale application of the proposed method to a national distribution company at a regional level.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 19 (1985)
    Issue (Month): 5 (October)
    Pages: 381-396

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    Handle: RePEc:eee:transb:v:19:y:1985:i:5:p:381-396

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    Cited by:
    1. 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.
    2. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    3. Validi, Sahar & Bhattacharya, Arijit & Byrne, P.J., 2014. "A case analysis of a sustainable food supply chain distribution system—A multi-objective approach," International Journal of Production Economics, Elsevier, vol. 152(C), pages 71-87.
    4. Mina, Hokey & Jayaraman, Vaidyanathan & Srivastava, Rajesh, 1998. "Combined location-routing problems: A synthesis and future research directions," European Journal of Operational Research, Elsevier, vol. 108(1), pages 1-15, July.
    5. Lin, C.K.Y. & Kwok, R.C.W., 2006. "Multi-objective metaheuristics for a location-routing problem with multiple use of vehicles on real data and simulated data," European Journal of Operational Research, Elsevier, vol. 175(3), pages 1833-1849, December.
    6. Hunkar Toyoglu & Oya Karasan & Bahar Kara, 2012. "A New Formulation Approach for Location-Routing Problems," Networks and Spatial Economics, Springer, vol. 12(4), pages 635-659, December.
    7. Kang, Jee Eun & Chow, Joseph Y.J. & Recker, Will W., 2013. "On activity-based network design problems," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 398-418.
    8. Salhi, S. & Sari, M., 1997. "A multi-level composite heuristic for the multi-depot vehicle fleet mix problem," European Journal of Operational Research, Elsevier, vol. 103(1), pages 95-112, November.
    9. Tuzun, Dilek & Burke, Laura I., 1999. "A two-phase tabu search approach to the location routing problem," European Journal of Operational Research, Elsevier, vol. 116(1), pages 87-99, July.
    10. Karaoglan, Ismail & Altiparmak, Fulya & Kara, Imdat & Dengiz, Berna, 2011. "A branch and cut algorithm for the location-routing problem with simultaneous pickup and delivery," European Journal of Operational Research, Elsevier, vol. 211(2), pages 318-332, June.
    11. ReVelle, C. S. & Eiselt, H. A., 2005. "Location analysis: A synthesis and survey," European Journal of Operational Research, Elsevier, vol. 165(1), pages 1-19, August.
    12. Ahmadi-Javid, Amir & Seddighi, Amir Hossein, 2013. "A location-routing problem with disruption risk," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 63-82.
    13. Nagy, Gabor & Salhi, Said, 2007. "Location-routing: Issues, models and methods," European Journal of Operational Research, Elsevier, vol. 177(2), pages 649-672, March.

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