IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v272y2019i2p655-673.html
   My bibliography  Save this article

Selective capacitated location-routing problem with incentive-dependent returns in designing used products collection network

Author

Listed:
  • Bagheri Hosseini, Mozhde
  • Dehghanian, Farzad
  • Salari, Majid

Abstract

This paper addresses a generalization of the capacitated location-routing problem (CLRP) arising in the design of a collection network for a company engaged in collecting used products from customer zones. The company offers customers a financial incentive per unit of used products. This incentive determines the quantity of used products which are returned by customers. Moreover, it is not necessary for the company to visit all customer zones or to collect all returns in each visited customer zone. The objective is to simultaneously find the location of collection centers, the routes of vehicles, the value of incentive offered and the amount of used products collected from customer zones, so as to maximize the company's overall profit. We develop two mixed integer linear programming formulations of the problem and a heuristic algorithm based on iterated local search. Extensive computational experiments on this problem demonstrate the effectiveness of the proposed algorithm.

Suggested Citation

  • Bagheri Hosseini, Mozhde & Dehghanian, Farzad & Salari, Majid, 2019. "Selective capacitated location-routing problem with incentive-dependent returns in designing used products collection network," European Journal of Operational Research, Elsevier, vol. 272(2), pages 655-673.
    • Handle: RePEc:eee:ejores:v:272:y:2019:i:2:p:655-673
    DOI: 10.1016/j.ejor.2018.06.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221718305733
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2018.06.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Markus Klausner & Chris T. Hendrickson, 2000. "Reverse-Logistics Strategy for Product Take-Back," Interfaces, INFORMS, vol. 30(3), pages 156-165, June.
    2. M Labbé & I Rodríguez-Martin & J J Salazar-González, 2004. "A branch-and-cut algorithm for the plant-cycle location problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 513-520, May.
    3. 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.
    4. De Giovanni, Pietro & Reddy, Puduru V. & Zaccour, Georges, 2016. "Incentive strategies for an optimal recovery program in a closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 249(2), pages 605-617.
    5. Allahyari, Somayeh & Salari, Majid & Vigo, Daniele, 2015. "A hybrid metaheuristic algorithm for the multi-depot covering tour vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 242(3), pages 756-768.
    6. Nagy, Gabor & Salhi, Said, 2007. "Location-routing: Issues, models and methods," European Journal of Operational Research, Elsevier, vol. 177(2), pages 649-672, March.
    7. 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.
    8. G. Dantzig & R. Fulkerson & S. Johnson, 1954. "Solution of a Large-Scale Traveling-Salesman Problem," Operations Research, INFORMS, vol. 2(4), pages 393-410, November.
    9. Aras, Necati & Aksen, Deniz, 2008. "Locating collection centers for distance- and incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 111(2), pages 316-333, February.
    10. Escobar, John Willmer & Linfati, Rodrigo & Baldoquin, Maria G. & Toth, Paolo, 2014. "A Granular Variable Tabu Neighborhood Search for the capacitated location-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 344-356.
    11. V. Daniel R. Guide, Jr. & Ruud H. Teunter & Luk N. Van Wassenhove, 2003. "Matching Demand and Supply to Maximize Profits from Remanufacturing," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 303-316, October.
    12. Ting, Ching-Jung & Chen, Chia-Ho, 2013. "A multiple ant colony optimization algorithm for the capacitated location routing problem," International Journal of Production Economics, Elsevier, vol. 141(1), pages 34-44.
    13. Karaoglan, Ismail & Altiparmak, Fulya & Kara, Imdat & Dengiz, Berna, 2012. "The location-routing problem with simultaneous pickup and delivery: Formulations and a heuristic approach," Omega, Elsevier, vol. 40(4), pages 465-477.
    14. Salhi, Said & Rand, Graham K., 1989. "The effect of ignoring routes when locating depots," European Journal of Operational Research, Elsevier, vol. 39(2), pages 150-156, March.
    15. Shad Dowlatshahi, 2000. "Developing a Theory of Reverse Logistics," Interfaces, INFORMS, vol. 30(3), pages 143-155, June.
    16. Roberto Baldacci & Aristide Mingozzi & Roberto Wolfler Calvo, 2011. "An Exact Method for the Capacitated Location-Routing Problem," Operations Research, INFORMS, vol. 59(5), pages 1284-1296, October.
    17. Aras, Necati & Aksen, Deniz & Gönül Tanugur, Ayse, 2008. "Locating collection centers for incentive-dependent returns under a pick-up policy with capacitated vehicles," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1223-1240, December.
    18. Srivastava, R, 1993. "Alternate solution procedures for the location-routing problem," Omega, Elsevier, vol. 21(4), pages 497-506, July.
    19. de Figueiredo, João Neiva & Mayerle, Sérgio Fernando, 2008. "Designing minimum-cost recycling collection networks with required throughput," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 731-752, September.
    20. Barreto, Sergio & Ferreira, Carlos & Paixao, Jose & Santos, Beatriz Sousa, 2007. "Using clustering analysis in a capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 968-977, June.
    21. Hansen, P. H. & Hegedahl, B. & Hjortkjaer, S. & Obel, B., 1994. "A heuristic solution to the warehouse location-routing problem," European Journal of Operational Research, Elsevier, vol. 76(1), pages 111-127, July.
    22. Aksen, Deniz & Aras, Necati & Karaarslan, Ayse Gönül, 2009. "Design and analysis of government subsidized collection systems for incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 119(2), pages 308-327, June.
    23. Vera Hemmelmayr & Karen Smilowitz & Luis de la Torre, 2017. "A periodic location routing problem for collaborative recycling," IISE Transactions, Taylor & Francis Journals, vol. 49(4), pages 414-428, April.
    24. Kaya, Onur, 2010. "Incentive and production decisions for remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 201(2), pages 442-453, March.
    25. 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.
    26. Moshref-Javadi, Mohammad & Lee, Seokcheon, 2016. "The Latency Location-Routing Problem," European Journal of Operational Research, Elsevier, vol. 255(2), pages 604-619.
    27. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Sen & Liu, Kanglin & Zhang, Zhi-Hai, 2023. "Column-and-constraint-generation-based approach to a robust reverse logistic network design for bike sharing," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 90-118.
    2. Fontecha, John E. & Nikolaev, Alexander & Walteros, Jose L. & Zhu, Zhenduo, 2022. "Scientists wanted? A literature review on incentive programs that promote pro-environmental consumer behavior: Energy, waste, and water," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    3. Wang, Mengtong & Zhang, Canrong & Bell, Michael G.H. & Miao, Lixin, 2022. "A branch-and-price algorithm for location-routing problems with pick-up stations in the last-mile distribution system," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1258-1276.
    4. Gong, Hailei & Zhang, Zhi-Hai, 2022. "Benders decomposition for the distributionally robust optimization of pricing and reverse logistics network design in remanufacturing systems," European Journal of Operational Research, Elsevier, vol. 297(2), pages 496-510.
    5. Kian, Ramez & Erdoğan, Güneş & de Leeuw, Sander & Sibel Salman, F. & Sabet, Ehsan & Kara, Bahar Y. & Demir, Muhittin H., 2022. "Logistics planning of cash transfer to Syrian refugees in Turkey," European Journal of Operational Research, Elsevier, vol. 296(3), pages 1007-1024.
    6. Ítalo Ruan Barbosa de Aquino & Josenildo Ferreira da Silva Junior & Patricia Guarnieri & Lucio Camara e Silva, 2020. "The Proposition of a Mathematical Model for the Location of Electrical and Electronic Waste Collection Points," Sustainability, MDPI, vol. 13(1), pages 1-15, December.
    7. Das, Debabrata & Dutta, Pankaj, 2022. "Product return management through promotional offers: The role of consumers’ loss aversion," International Journal of Production Economics, Elsevier, vol. 251(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Schneider & Michael Drexl, 2017. "A survey of the standard location-routing problem," Annals of Operations Research, Springer, vol. 259(1), pages 389-414, December.
    2. Daniel Negrotto & Irene Loiseau, 2021. "A Branch & Cut algorithm for the prize-collecting capacitated location routing problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(1), pages 34-57, April.
    3. Yanwei Zhao & Longlong Leng & Chunmiao Zhang, 2021. "A novel framework of hyper-heuristic approach and its application in location-routing problem with simultaneous pickup and delivery," Operational Research, Springer, vol. 21(2), pages 1299-1332, June.
    4. Alvarez, Jose A. Lopez & Buijs, Paul & Deluster, Rogier & Coelho, Leandro C. & Ursavas, Evrim, 2020. "Strategic and operational decision-making in expanding supply chains for LNG as a fuel," Omega, Elsevier, vol. 97(C).
    5. Drexl, M. & Schneider, M., 2014. "A Survey of the Standard Location-Routing Problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65940, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. 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.
    7. Menezes, Mozart B.C. & Ruiz-Hernández, Diego & Verter, Vedat, 2016. "A rough-cut approach for evaluating location-routing decisions via approximation algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 87(C), pages 89-106.
    8. Nadizadeh, Ali & Hosseini Nasab, Hasan, 2014. "Solving the dynamic capacitated location-routing problem with fuzzy demands by hybrid heuristic algorithm," European Journal of Operational Research, Elsevier, vol. 238(2), pages 458-470.
    9. Paolo Gianessi & Laurent Alfandari & Lucas Létocart & Roberto Wolfler Calvo, 2016. "The Multicommodity-Ring Location Routing Problem," Transportation Science, INFORMS, vol. 50(2), pages 541-558, May.
    10. 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.
    11. Younes Rahmani & Wahiba Ramdane Cherif-Khettaf & Ammar Oulamara, 2016. "The two-echelon multi-products location-routing problem with pickup and delivery: formulation and heuristic approaches," International Journal of Production Research, Taylor & Francis Journals, vol. 54(4), pages 999-1019, February.
    12. Michael Schneider & Maximilian Löffler, 2019. "Large Composite Neighborhoods for the Capacitated Location-Routing Problem," Service Science, INFORMS, vol. 53(1), pages 301-318, February.
    13. Ting, Ching-Jung & Chen, Chia-Ho, 2013. "A multiple ant colony optimization algorithm for the capacitated location routing problem," International Journal of Production Economics, Elsevier, vol. 141(1), pages 34-44.
    14. Karaoglan, Ismail & Altiparmak, Fulya & Kara, Imdat & Dengiz, Berna, 2012. "The location-routing problem with simultaneous pickup and delivery: Formulations and a heuristic approach," Omega, Elsevier, vol. 40(4), pages 465-477.
    15. Nasrin Asgari & Mohsen Rajabi & Masoumeh Jamshidi & Maryam Khatami & Reza Zanjirani Farahani, 2017. "A memetic algorithm for a multi-objective obnoxious waste location-routing problem: a case study," Annals of Operations Research, Springer, vol. 250(2), pages 279-308, March.
    16. Zhang, Ying & Qi, Mingyao & Lin, Wei-Hua & Miao, Lixin, 2015. "A metaheuristic approach to the reliable location routing problem under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 90-110.
    17. Oktay Yılmaz & Ertan Yakıcı & Mumtaz Karatas, 2019. "A UAV location and routing problem with spatio-temporal synchronization constraints solved by ant colony optimization," Journal of Heuristics, Springer, vol. 25(4), pages 673-701, October.
    18. 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.
    19. 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.
    20. Zhu, Stuart X. & Ursavas, Evrim, 2018. "Design and analysis of a satellite network with direct delivery in the pharmaceutical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 190-207.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:272:y:2019:i:2:p:655-673. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.