A simulated annealing heuristic for the capacitated location routing problem

Authors:
Vincent F. Yu;Shih-Wei Lin;Wenyih Lee;Ching-Jung Ting
Affiliations:
Department of Industrial Management, National Taiwan University of Science and Technology, 43, Section 4, Keelung Road, Taipei 106, Taiwan;Department of Information Management, Chang Gung University, 259 Wen-Hwa 1st Road, Kwei-Shan, Tao-Yuan 333, Taiwan;Department of Business Administration, Chang Gung University, 259 Wen-Hwa 1st Road, Kwei-Shan, Tao-Yuan 333, Taiwan;Department of Industrial Engineering and Management, Yuan Ze University, 135 Yuan-Tung Road, Chung-Li 32003, Taiwan
Venue:
Computers and Industrial Engineering
Year:
2010

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Abstract

The location routing problem (LRP) is a relatively new research direction within location analysis that takes into account vehicle routing aspects. The goal of LRP is to solve a facility location problem and a vehicle routing problem simultaneously. We propose a simulated annealing (SA) based heuristic for solving the LRP. The proposed SALRP heuristic is tested on three sets of well-known benchmark instances and the results are compared with other heuristics in the literature. The computational study indicates that the proposed SALRP heuristic is competitive with other well-known algorithms.