A branch and cut algorithm for the location‐routing problem with simultaneous pickup and delivery

This paper addresses a location‐routing problem with simultaneous pickup and delivery (LRPSPD) which is a general case of the location‐routing problem. The LRPSPD is defined as finding locations of the depots and designing vehicle routes in such a way that pickup and delivery demands of each customer must be performed with same vehicle and the overall cost is minimized. We propose an effective branch‐and‐cut algorithm for solving the LRPSPD. The proposed algorithm implements several valid inequalities adapted from the literature for the problem and a local search based on simulated annealing algorithm to obtain upper bounds. Computational results, for a large number of instances derived from the literature, show that some instances with up to 88 customers and 8 potential depots can be solved in a reasonable computation time.