Caroline Prodhon

A survey of recent research on location-routing problems

The design of distribution systems raises hard combinatorial optimization problems. For instance, facility location problems must be solved at the strategic decision level to place factories and warehouses, while vehicle routes must be built at the tactical or operational levels to supply customers. In fact, location and routing decisions are interdependent and studies have shown that the overall system cost may be excessive if they are tackled separately. The location-routing problem (LRP) integrates the two kinds of decisions. Given a set of potential depots with opening costs, a fleet of identical vehicles and a set of customers with known demands, the classical LRP consists in opening a subset of depots, assigning customers to them and determining vehicle routes, to minimize a total cost including the cost of open depots, the fixed costs of vehicles used, and the total cost of the routes. Since the last comprehensive survey on the LRP, published by Nagy and Salhi (2007), the number of articles devoted to this problem has grown quickly, calling a review of new research works. This paper analyzes the recent literature (72 articles) on the standard LRP and new extensions such as several distribution echelons, multiple objectives or uncertain data. Results of state-of-the-art metaheuristics are also compared on standard sets of instances for the classical LRP, the two-echelon LRP and the truck and trailer problem.

Solving the capacitated location-routing problem by a GRASP complemented by a learning process and a path relinking

As shown in recent researches, the costs in distribution systems may be excessive if routes are ignored when locating depots. The location routing problem (LRP) overcomes this drawback by simultaneously tackling location and routing decisions. This paper presents a new metaheuristic to solve the LRP with capacitated routes and depots. A first phase executes a GRASP, based on an extended and randomized version of Clarke and Wright algorithm. This phase is implemented with a learning process on the choice of depots. In a second phase, new solutions are generated by a post-optimization using a path relinking. The method is evaluated on sets of randomly generated instances, and compared to other heuristics and a lower bound. Solutions are obtained in a reasonable amount of time for such a strategic problem. Furthermore, the algorithm is competitive with a metaheuristic published for the case of uncapacitated depots.

Solving the Capacitated Location-Routing Problem by a Cooperative Lagrangean Relaxation-Granular Tabu Search Heuristic

Most of the time in a distribution system, depot location and vehicle routing are interdependent, and recent studies have shown that the overall system cost may be excessive if routing decisions are ignored when locating depots. The location-routing problem (LRP) overcomes this drawback by simultaneously tackling location and routing decisions. This paper presents a cooperative metaheuristic to solve the LRP with capacitated routes and depots. The principle is to alternate between a depot location phase and a routing phase, exchanging information on the most promising edges. In the first phase, the routes and their customers are aggregated into supercustomers, leading to a facility-location problem, which is then solved by a Lagrangean relaxation of the assignment constraints. In the second phase, the routes from the resulting multidepot vehicle-routing problem (VRP) are improved using a granular tabu search (GTS) heuristic. At the end of each global iteration, information about the edges most often used is recorded to be used in the following phases. The method is evaluated on three sets of randomly generated instances and compared with other heuristics and a lower bound. Solutions are obtained in a reasonable amount of time for such a strategic problem and show that this metaheuristic outperforms other methods on various kinds of instances.

A Branch-and-Cut method for the Capacitated Location-Routing Problem

Most of the time in a distribution system, depot location and vehicle routing are interdependent and recent researches have shown that the overall system cost may be excessive if routing decisions are ignored when locating depots. The location routing problem (LRP) overcomes this drawback by simultaneously tackling location and routing decisions. This paper presents two formulations of the location-routing problem with capacities on routes and depots and proposes an exact method based on a branch and cut approach using these formulations. The method is evaluated on two sets of randomly generated instances, and compared to heuristics and another lower bound

Supply planning under uncertainties in MRP environments: a state of the art

Inventory control in a supply chain is crucial for companies desiring to satisfy their customers demands as well as controlling costs. This paper examines specifically supply planning under uncertainties in MRP environments. Models from literature that deal with random demand or lead time uncertainties are described and commented. Promising research areas emerge from this survey. It appears that lead time uncertainty has been ignored in the past, in spite of their significant importance. In particular, an interesting topic concerns assembly systems with uncertain lead times, for which the main difficulty comes from the inter-dependence of components inventories. Another promising issue, which is also presented, relates to supply planning under simultaneously demand and lead time uncertainties, which is certainly of great interest for both the academic and industrial communities.

A GRASP×ELS approach for the capacitated location-routing problem

This paper addresses the capacitated location-routing problem (CLRP), raised by distribution networks involving depot location, fleet assignment and routing decisions. The CLRP is defined by a set of potential depot locations, with opening costs and limited capacities, a homogeneous fleet of vehicles, and a set of customers with known demands. The objective is to open a subset of depots, to assign customers to these depots and to design vehicle routes, in order to minimize both the cost of open depots and the total cost of the routes. The proposed solution method is a greedy randomized adaptive search procedure (GRASP), calling an evolutionary local search (ELS) and searching within two solution spaces: giant tours without trip delimiters and true CLRP solutions. Giant tours are evaluated via a splitting procedure that minimizes the total cost subject to vehicle capacity, fleet size and depot capacities. This framework is benchmarked on classical instances. Numerical experiments show that the approach outperforms all previously published methods and provides numerous new best solutions.

A memetic algorithm with population management (MA

As shown in recent researches, in a distribution system, ignoring routes when locating depots may overestimate the overall system cost. The Location Routing Problem (LRP) overcomes this drawback dealing simultaneously with location and routing decisions. This paper presents a memetic algorithm with population management (MA|PM) to solve the LRP with capacitated routes and depots. MA|PM is a very recent form of memetic algorithm in which the diversity of a small population of solutions is controlled by accepting a new solution if its distance to the population exceeds a given threshold. The method is evaluated on three sets of instances, and compared to other heuristics and a lower bound. The preliminary results are quite promising since the MA|PM already finds the best results on several instances.

A hybrid evolutionary algorithm for the periodic location-routing problem

The well-known vehicle routing problem (VRP) has been studied in depth over the last decades. Nowadays, generalizations of VRP have been developed for tactical or strategic decision levels of companies but not both. The tactical extension or periodic VRP (PVRP) plans a set of trips over a multiperiod horizon, subject to frequency constraints. The strategic extension is motivated by interdependent depot location and routing decisions in most distribution systems. Low-quality solutions are obtained if depots are located first, regardless of the future routes. In the location-routing problem (LRP), location and routing decisions are tackled simultaneously. Here for the first time, except for some conference papers, the goal is to combine the PVRP and LRP into an even more realistic problem covering all decision levels: the periodic LRP or PLRP. A hybrid evolutionary algorithm is proposed to solve large size instances of the PLRP. First, an individual representing an assignment of customers to combinations of visit days is randomly generated. The evolution operates through an Evolutionary Local Search (ELS) on visit day assignments. The algorithm is hybridized with a heuristic based on the Randomized Extended Clarke and Wright Algorithm (RECWA) to create feasible solutions and stops when a given number of iterations is reached. The method is evaluated over three sets of instances, and solutions are compared to the literature on particular cases such as one-day horizon (LRP) or one depot (PVRP). This metaheuristic outperforms the previous methods for the PLRP.

A multi-start evolutionary local search for the two-echelon location routing problem

This paper presents a new hybrid metaheuristic between a greedy randomized adaptive search procedure (GRASP) and an evolutionary/ iterated local search (ELS/ILS), using Tabu list to solve the two-echelon location routing problem (LRP-2E). The GRASP uses in turn three constructive heuristics followed by local search to generate the initial solutions. From a solution of GRASP, an intensification strategy is carried out by a dynamic alternation between ELS and ILS. In this phase, each child is obtained by mutation and evaluated through a splitting procedure of giant tour followed by a local search. The tabu list, defined by two characteristics of solution (total cost and number of trips), is used to avoid searching a space already explored. The results show that our metaheuristic clearly outperforms all previously published methods on LRP-2E benchmark instances. Furthermore, it is competitive with the best meta-heuristic published for the single-echelon LRP.

A hybrid evolutionary local search with depth first search split procedure for the heterogeneous vehicle routing problems

Routing Problems have been deeply studied over the last decades. Split procedures have proved their efficiency for those problems, especially within global optimization frameworks. The purpose is to build a feasible routing solution by splitting a giant tour into trips. This is done by computing a shortest path on an auxiliary graph built from the giant tour. One of the latest advances consists in handling extra resource constraints through the generation of labels on the nodes of the auxiliary graph. Lately, the development of a new generic split family based on a Depth First Search (DFS) approach during label generation has highlighted the efficiency of this new method for the routing problems, through extensive numerical evaluations on the location-routing problem. In this paper, we present a hybrid Evolutionary Local Search (hybrid ELS) for non-homogeneous fleet Vehicle Routing Problems (VRP) based on the application of split strategies. Experiments show our method is able to handle all known benchmarks, from Vehicle Fleet Mix Problems to Heterogeneous Fleet VRP (HVRP). We also propose a set of new realistic HVRP instances from 50 to more than 250 nodes coming from French counties. It relies on real distances in kilometers between towns. Since many classical HVRP instance sets are solved to optimality, this new set of instances could allow a fair comparative study of methods. The DFS split strategy shows its efficiency and attests the fact that it can be a promising line of research for routing problems including numerous additional constraints.