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A Bi-Level Programming Approach to the Location-Routing Problem with Cargo Splitting under Low-Carbon Policies

Author

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  • Cong Wang

    (School of Economics & Management, Southeast University, Nanjing 211189, China
    School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China)

  • Zhongxiu Peng

    (School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China)

  • Xijun Xu

    (School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China)

Abstract

To identify the impact of low-carbon policies on the location-routing problem (LRP) with cargo splitting (LRPCS), this paper first constructs the bi-level programming model of LRPCS. On this basis, the bi-level programming models of LRPCS under four low-carbon policies are constructed, respectively. The upper-level model takes the engineering construction department as the decision-maker to decide on the distribution center’s location. The lower-level model takes the logistics and distribution department as the decision-maker to make decisions on the vehicle distribution route’s scheme. Secondly, the hybrid algorithm of Ant Colony Optimization and Tabu Search (ACO-TS) is designed, and an example is introduced to verify the model’s and algorithm’s effectiveness. Finally, multiple sets of experiments are designed to explore the impact of various low-carbon policies on the decision-making of the LRPCS. The experimental results show that the influence of the carbon tax policy is the greatest, the carbon trading and carbon offset policy have a certain impact on the decision-making of the LRPCS, and the influence of the emission cap policy is the least. Based on this, we provide the relevant low-carbon policies advice and management implications.

Suggested Citation

  • Cong Wang & Zhongxiu Peng & Xijun Xu, 2021. "A Bi-Level Programming Approach to the Location-Routing Problem with Cargo Splitting under Low-Carbon Policies," Mathematics, MDPI, vol. 9(18), pages 1-34, September.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:18:p:2325-:d:639022
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    References listed on IDEAS

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    2. Hongli Zhu & Congcong Liu & Yongming Song, 2022. "A Bi-Level Programming Model for the Integrated Problem of Low Carbon Supplier Selection and Transportation," Sustainability, MDPI, vol. 14(16), pages 1-11, August.

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