| Article ID: | iaor2009140 |
| Country: | United Kingdom |
| Volume: | 11 |
| Issue: | 1 |
| Start Page Number: | 49 |
| End Page Number: | 65 |
| Publication Date: | Jan 2008 |
| Journal: | International Journal of Logistics Research and Applications |
| Authors: | Marinakis Yannis, Marinaki Magdalene |
| Keywords: | heuristics: genetic algorithms, transportation: general, vehicle routing & scheduling |
A fast, robust and efficient algorithm for solving the location routing problem (LRP) for one of the largest companies in Greece, which distributes wood products, is developed. To solve the company's problem, a new formulation of the LRP based on bilevel programming is proposed. Based on the fact that in the LRP, decisions are made at a strategic level and at an operational level, we formulate the problem in such a way that in the first level, the decisions of the strategic level are made, namely, the top manager finds the optimal location of the facilities: while in the second level, the operational level decisions are made, namely, the operational manager finds the optimal routing of vehicles. For this problem, a Bilevel Genetic Algorithm is proposed.