IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v42y2025i03ns0217595924500180.html
   My bibliography  Save this article

Multi-Period Profit-Oriented Location Routing Problem in Multi-User Warehouses with Backordering and Order Acceptance: A Relax-Fix-Optimize Heuristic

Author

Listed:
  • Mohammed Rida Ech-Charrat

    (ENSATE, University of Abdelmalek Essaadi, Tetouan, Morocco)

  • Najlae Zhani

    (Rabat Business School, BEAR Lab, International University of Rabat, Technopolis Shore, Rocade 11100, Sala Al Jadida, Morocco)

  • Kaoutar Chargui

    (Rabat Business School, BEAR Lab, International University of Rabat, Technopolis Shore, Rocade 11100, Sala Al Jadida, Morocco)

  • Tarik Zouadi

    (Rabat Business School, BEAR Lab, International University of Rabat, Technopolis Shore, Rocade 11100, Sala Al Jadida, Morocco)

Abstract

This paper addresses profit maximization in location routing problem (LRP) where backordering is allowed and serving all customers is not mandatory. The problem is motivated by the practical case of distribution companies using temporary multi-user warehouses to serve their customers. We propose a multi-period novel mixed integer linear programming (MILP) model for the problem where demand is price sensitive. The model seeks to find optimal locations of warehouses over the planning horizon, set of orders to serve, to backorder or to reject, and routing decisions giving optimal profit. The commercial solver (CPLEX) is used to solve the model on small instances. For medium and large instances, we propose a solution approach that incorporates the Relax and Fix (R&F), Fix and Optimize (F&O) procedures combined with local search heuristics. Computational experiments and economic analysis show the relevance of the proposed approach and the impact of parameters on generated profit.

Suggested Citation

  • Mohammed Rida Ech-Charrat & Najlae Zhani & Kaoutar Chargui & Tarik Zouadi, 2025. "Multi-Period Profit-Oriented Location Routing Problem in Multi-User Warehouses with Backordering and Order Acceptance: A Relax-Fix-Optimize Heuristic," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 42(03), pages 1-25, June.
    • Handle: RePEc:wsi:apjorx:v:42:y:2025:i:03:n:s0217595924500180
    DOI: 10.1142/S0217595924500180
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595924500180
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595924500180?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.

    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:wsi:apjorx:v:42:y:2025:i:03:n:s0217595924500180. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    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.