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A simultaneous facility location and vehicle routing problem arising in health care logistics in the Netherlands

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  • Veenstra, Marjolein
  • Roodbergen, Kees Jan
  • Coelho, Leandro C.
  • Zhu, Stuart X.

Abstract

This paper introduces a simultaneous facility location and vehicle routing problem that arises in health care logistics in the Netherlands. In this problem, the delivery of medication from a local pharmacy can occur via lockers, from where patients that are within the coverage distance of a locker can collect their medication, or by home delivery. The aim of the problem is to determine which lockers from a set of potential locker locations to open and to generate routes that visit the opened lockers and routes that visit the patients that are not covered by the opened lockers, while minimizing the routing costs and the opening costs of the lockers. We formally define this problem and solve it by applying a branch-and-bound algorithm to this mathematical formulation. Moreover, we propose a fast hybrid heuristic to solve the problem. Extensive computational results are given on a randomly generated instance set and an instance set inspired by practice from Alliance Healthcare Netherlands, an industrial partner. Our results indicate that our heuristic is able to consistently outperform a commercial solver applied to the mathematical formulation, and that its solutions are extremely robust. We provide important business insights on several parameters of the problem.

Suggested Citation

  • Veenstra, Marjolein & Roodbergen, Kees Jan & Coelho, Leandro C. & Zhu, Stuart X., 2018. "A simultaneous facility location and vehicle routing problem arising in health care logistics in the Netherlands," European Journal of Operational Research, Elsevier, vol. 268(2), pages 703-715.
    • Handle: RePEc:eee:ejores:v:268:y:2018:i:2:p:703-715
    DOI: 10.1016/j.ejor.2018.01.043
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    3. dos Santos, André Gustavo & Viana, Ana & Pedroso, João Pedro, 2022. "2-echelon lastmile delivery with lockers and occasional couriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    4. Glock, Katharina & Meyer, Anne, 2023. "Spatial coverage in routing and path planning problems," European Journal of Operational Research, Elsevier, vol. 305(1), pages 1-20.
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    6. Ashu Kedia & Diana Kusumastuti & Alan Nicholson, 2019. "Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach," Sustainability, MDPI, vol. 11(22), pages 1-23, November.
    7. Erfan Babaee Tirkolaee & Alireza Goli & Abbas Mardani, 2023. "A novel two-echelon hierarchical location-allocation-routing optimization for green energy-efficient logistics systems," Annals of Operations Research, Springer, vol. 324(1), pages 795-823, May.
    8. He, Xiaozhou & Wang, Qingyi, 2023. "A location-routing model for free-floating shared bike collection considering manual gathering and truck transportation," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    9. Tingting Ji & Shoufeng Ji & Yuanyuan Ji & Hongyu Liu, 2022. "Study on Sustainable Combined Location-Inventory-Routing Problem Based on Demand Forecasting," Sustainability, MDPI, vol. 14(23), pages 1-21, December.
    10. Jaller, Miguel & Pahwa, Anmol, 2023. "Coping with the Rise of E-commerce Generated Home Deliveries through Innovative Last-mile Technologies and Strategies," Institute of Transportation Studies, Working Paper Series qt5t76x0kh, Institute of Transportation Studies, UC Davis.

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