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Location routing for small package shippers with subcontracting options

Author

Listed:
  • 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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    References listed on IDEAS

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    1. Perl, Jossef & Daskin, Mark S., 1985. "A warehouse location-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 19(5), pages 381-396, October.
    2. 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.
    3. Stenger, A. & Schneider, M. & Schwind, M., 2010. "Decision Support for Location Routing with Relocation Aspects," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 62385, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Haughton, Michael A., 2008. "The efficacy of exclusive territory assignments to delivery vehicle drivers," European Journal of Operational Research, Elsevier, vol. 184(1), pages 24-38, January.
    5. 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.
    6. Jacobsen, S. K. & Madsen, O. B. G., 1980. "A comparative study of heuristics for a two-level routing-location problem," European Journal of Operational Research, Elsevier, vol. 5(6), pages 378-387, December.
    7. 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.
    8. Nagy, Gabor & Salhi, Said, 2007. "Location-routing: Issues, models and methods," European Journal of Operational Research, Elsevier, vol. 177(2), pages 649-672, March.
    9. Wasner, Michael & Zapfel, Gunther, 2004. "An integrated multi-depot hub-location vehicle routing model for network planning of parcel service," International Journal of Production Economics, Elsevier, vol. 90(3), pages 403-419, August.
    10. Krajewska, Marta Anna & Kopfer, Herbert, 2009. "Transportation planning in freight forwarding companies: Tabu search algorithm for the integrated operational transportation planning problem," European Journal of Operational Research, Elsevier, vol. 197(2), pages 741-751, September.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. repec:eee:proeco:v:198:y:2018:i:c:p:79-92 is not listed on IDEAS
    4. Zare Mehrjerdi, Yahia & Nadizadeh, Ali, 2013. "Using greedy clustering method to solve capacitated location-routing problem with fuzzy demands," European Journal of Operational Research, Elsevier, vol. 229(1), pages 75-84.
    5. 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.
    6. 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.
    7. repec:eee:ejores:v:268:y:2018:i:2:p:703-715 is not listed on IDEAS
    8. repec:eee:transe:v:109:y:2018:i:c:p:331-355 is not listed on IDEAS

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