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A New Formulation Approach for Location-Routing Problems

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  • Hunkar Toyoglu
  • Oya Karasan
  • Bahar Kara

Abstract

A Location-Routing Problem (LRP) combines two difficult problems, facility location and vehicle routing, and as such it is inherently hard to solve. In this paper, we propose a different formulation approach than the common arc-based product-flow (Arc-BPF) approach in the literature. We associate product amounts to the nodes of the network resulting in a node-based product-flow (Node-BPF) formulation. Our main objective is to develop LRP models with fewer constraints and variables, which can be solved more efficiently. To introduce the proposed approach, we reformulate a complex four-index Arc-BPF LRP model from the literature as a three-index Node-BPF model, which computationally outperforms the former. We then introduce a heuristic method. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Hunkar Toyoglu & Oya Karasan & Bahar Kara, 2012. "A New Formulation Approach for Location-Routing Problems," Networks and Spatial Economics, Springer, vol. 12(4), pages 635-659, December.
    • Handle: RePEc:kap:netspa:v:12:y:2012:i:4:p:635-659
    DOI: 10.1007/s11067-011-9170-y
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    2. M. Alinaghian & M. Ghazanfari & N. Norouzi & H. Nouralizadeh, 2017. "A Novel Model for the Time Dependent Competitive Vehicle Routing Problem: Modified Random Topology Particle Swarm Optimization," Networks and Spatial Economics, Springer, vol. 17(4), pages 1185-1211, December.
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    6. Junlong Zhang & William Lam & Bi Chen, 2013. "A Stochastic Vehicle Routing Problem with Travel Time Uncertainty: Trade-Off Between Cost and Customer Service," Networks and Spatial Economics, Springer, vol. 13(4), pages 471-496, December.
    7. Onur Kaya & Dogus Ozkok, 2020. "A Blood Bank Network Design Problem with Integrated Facility Location, Inventory and Routing Decisions," Networks and Spatial Economics, Springer, vol. 20(3), pages 757-783, September.
    8. Surendra Reddy Kancharla & Gitakrishnan Ramadurai, 2019. "Multi-depot Two-Echelon Fuel Minimizing Routing Problem with Heterogeneous Fleets: Model and Heuristic," Networks and Spatial Economics, Springer, vol. 19(3), pages 969-1005, September.

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