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Location routing for small package shippers with subcontracting options

Author

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  • 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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    2. Niroomand, Iman & Nsakanda, Aaron Luntala, 2018. "Improving collection flows in a public postal network with contractor's obligation considerations," International Journal of Production Economics, Elsevier, vol. 198(C), pages 79-92.
    3. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2020. "Sustainable distribution system design: a two-phase DoE-guided meta-heuristic solution approach for a three-echelon bi-objective AHP-integrated location-routing model," Annals of Operations Research, Springer, vol. 290(1), pages 191-222, July.
    4. Li, Lei & Al Chami, Zaher & Manier, Hervé & Manier, Marie-Ange & Xue, Jian, 2021. "Incorporating fuel delivery in network design for hydrogen fueling stations: Formulation and two metaheuristic approaches," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    5. 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.
    6. 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.
    7. Mahdi Bashiri & Zeinab Rasoulinejad & Ehsan Fallahzade, 2016. "A new approach on auxiliary vehicle assignment in capacitated location routing problem," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(4), pages 886-902, March.
    8. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2021. "An evaluation of three DoE-guided meta-heuristic-based solution methods for a three-echelon sustainable distribution network," Annals of Operations Research, Springer, vol. 296(1), pages 421-469, January.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Zolfagharinia, Hossein & Haughton, Michael, 2018. "The importance of considering non-linear layover and delay costs for local truckers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 331-355.
    14. Michael Schneider & Maximilian Löffler, 2019. "Large Composite Neighborhoods for the Capacitated Location-Routing Problem," Service Science, INFORMS, vol. 53(1), pages 301-318, February.

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