The stochastic multiperiod location transportation problem

The stochastic multiperiod location transportation problem

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Article ID: iaor20104485
Volume: 44
Issue: 2
Start Page Number: 221
End Page Number: 237
Publication Date: May 2010
Journal: Transportation Science
Authors: , , ,
Keywords: location, heuristics: tabu search
Abstract:

This paper studies a stochastic multiperiod location-transportation problem (SMLTP) characterized by multiple transportation options, multiple demand periods, and a stochastic demand. We consider the determination of the number and location of the depots required to satisfy customer demand as well as the mission of these depots in terms of the subset of customers they must supply. The problem is formulated as a stochastic program with recourse, and a hierarchical heuristic solution approach is proposed. It incorporates a tabu search procedure, an approximate route length formula, and a modified procedure of Clarke and Wright (1964). Three neighbourhood exploration strategies are proposed and compared with extensive experiments based on realistic problems.

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