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Green logistics location-routing problem with eco-packages

Author

Listed:
  • Wang, Yong
  • Peng, Shouguo
  • Zhou, Xuesong
  • Mahmoudi, Monirehalsadat
  • Zhen, Lu

Abstract

Optimization of the green logistics location-routing problem with eco-packages involves solving a two-echelon location-routing problem and the pickup and delivery problem with time windows. The first echelon consists of large eco-package transport, which is modeled by a time-discretized transport-concentrated network flow programming in the resource sharing state–space–time (SST) network. The second echelon focuses on small eco-package pickups and deliveries, established by the cost-minimized synchronization-oriented location routing model that minimizes the total generalized cost, which includes internal transportation cost, value of eco-packages, short-term benefits and environmental externalities. In addition, the Gaussian mixture clustering algorithm is utilized to assign customers to their respective service providers in the pickup and delivery process, and a Clarke–Wright saving method-based non-dominated sorting genetic algorithm II is designed to optimize pickup and delivery routes, and improve their cost-effectiveness and degree of synchronization. Different strategy testing results are used in the service phase as input data to calculate the cost of the transport phase, which is solved through a Lagrangian relaxation approach. The 3D SST network representation innovatively captures the eco-package route sequence and state transition constraints over the shortest path in the pickup and delivery at any given moment of the transport phase. A large-scale logistics network in Chengdu, China, is used to demonstrate the proposed model and algorithm, and undertake sensitivity analysis considering the life cycle of green eco-packages.

Suggested Citation

  • Wang, Yong & Peng, Shouguo & Zhou, Xuesong & Mahmoudi, Monirehalsadat & Zhen, Lu, 2020. "Green logistics location-routing problem with eco-packages," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    • Handle: RePEc:eee:transe:v:143:y:2020:i:c:s1366554520307663
    DOI: 10.1016/j.tre.2020.102118
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