Title: A hybrid GRASP-tabu search metaheuristic for a Four-Layer Location-Routing Problem

Authors: Mohsen Hamidi; Kambiz Farahmand; S. Reza Sajjadi; Kendall E. Nygard

Addresses: Department of Industrial and Manufacturing Engineering, North Dakota State University, NDSU Department, 2485, P.O. Box 6050, Fargo, North Dakota 58108-6050, USA ' Department of Industrial and Manufacturing Engineering, North Dakota State University, NDSU Department, 2485, P.O. Box 6050, Fargo, North Dakota 58108-6050, USA ' TransSolutions, LLC, 14600 Trinity Blvd., Suite 200, Fort Worth, TX 76155, USA ' Department of Computer Science, North Dakota State University, IACC 258, 2740, P.O. Box 6050, Fargo, ND 58108-6050, USA

Abstract: The location-routing problem simultaneously considers location, allocation, and vehicle routing decisions to design optimal distribution networks. In this paper, a hybrid GRASP-tabu search metaheuristic developed for a complex four-layer LRP is presented. The LRP integrates location, allocation, vehicle routing, and transshipment problems. The metaheuristic decomposes the problem into two sub-problems, a location-allocation-transshipment problem and a routing problem. Two metaheuristics of GRASP and tabu search are combined to solve the first sub-problem in which the routing cost is considered implicitly. The Clarke-Wright Savings algorithm and a node ejection chains algorithm are used to solve the second sub-problem.

Keywords: LRP; location-routing problem; GRASP; greedy randomised adaptive search procedure; tabu search; distribution networks; location; allocation; vehicle routing; transshipment.

DOI: 10.1504/IJLSM.2012.047602

International Journal of Logistics Systems and Management, 2012 Vol.12 No.3, pp.267 - 287

Published online: 28 Nov 2014 *

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