A compact model and tight bounds for a combined location-routing problem

Authors:
Maria Albareda-Sambola;Juan A. Díaz;Elena Fernández
Affiliations:
Dept. d'Estadística i Investigació Operativa, Univ. Politècnica de Catalunya, Barcelona 08028, Spain and Canada Res. Chair on Distn. Mgmt., Ecole des Hautes Études Commerciales ...;Department d'Estadística i Investigació Operativa, Universitat Politècnica de Catalunya, Pau Gargallo, 5, Barcelona 08028, Spain;Department d'Estadística i Investigació Operativa, Universitat Politècnica de Catalunya, Pau Gargallo, 5, Barcelona 08028, Spain
Venue:
Computers and Operations Research
Year:
2005

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Abstract

This paper considers a combined location-routing problem. We define an auxiliary network and give a compact formulation of the problem in terms of finding a set of paths in the auxiliary network that fulfill additional constraints. The LP solution to the considered model provides an initial lower bound and is also used in a rounding procedure that provides the initial solution for a Tabu search heuristic. Additionally, we propose a different lower bound based on the structure of the problem. The results of computational testing on a set of randomly generated instances are promising.