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

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

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Article ID: iaor20108248
Volume: 38
Issue: 6
Start Page Number: 931
End Page Number: 941
Publication Date: Jun 2011
Journal: Computers and Operations Research
Authors: , , , ,
Keywords: location, vehicle routing & scheduling
Abstract:

Recent researches in the design of logistic networks have shown that the overall distribution 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. The aim of this paper is to propose an exact approach based on a Branch-and-Cut algorithm for solving the LRP with capacity constraints on depots and vehicles. The proposed method is based on a zero-one linear model strengthened by new families of valid inequalities. The computational evaluation on three sets of instances (34 instances in total), with 5‐10 potential depots and 20‐88 customers, shows that 26 instances with five depots are solved to optimality, including all instances with up to 40 customers and three with 50 customers.

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