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Many-to-many location-routing with inter-hub transport and multi-commodity pickup-and-delivery

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  • Rieck, Julia
  • Ehrenberg, Carsten
  • Zimmermann, Jürgen

Abstract

In this paper, we consider a variant of the many-to-many location-routing problem, where hub facilities have to be located and customers with either pickup or delivery demands have to be combined in vehicle routes. In addition, several commodities and inter-hub transport processes are taken into account. A practical application of the problem can be found in the timber-trade industry, where companies provide their services using hub-and-spoke networks. We present a mixed-integer linear model for the problem and use CPLEX 12.4 to solve small-scale instances. Furthermore, a multi-start procedure based on a fix-and-optimize scheme and a genetic algorithm are introduced that efficiently construct promising solutions for medium- and large-scale instances. A computational performance analysis shows that the presented methods are suitable for practical application.

Suggested Citation

  • Rieck, Julia & Ehrenberg, Carsten & Zimmermann, Jürgen, 2014. "Many-to-many location-routing with inter-hub transport and multi-commodity pickup-and-delivery," European Journal of Operational Research, Elsevier, vol. 236(3), pages 863-878.
    • Handle: RePEc:eee:ejores:v:236:y:2014:i:3:p:863-878
    DOI: 10.1016/j.ejor.2013.12.021
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