| Article ID: | iaor20124941 |
| Volume: | 12 |
| Issue: | 3 |
| Start Page Number: | 267 |
| End Page Number: | 287 |
| Publication Date: | Jul 2012 |
| Journal: | International Journal of Logistics Systems and Management |
| Authors: | Hamidi Mohsen, Farahmand Kambiz, Sajjadi S Reza, Nygard Kendall E |
| Keywords: | programming: quadratic, vehicle routing & scheduling, heuristics: tabu search, combinatorial optimization |
The location‐routing problem simultaneously considers location, allocation, and vehicle routing decisions to design optimal distribution networks. In this paper, a hybrid GRASP‐tabu search metaheuristic developed for a complex four‐layer LRP is presented. The LRP integrates location, allocation, vehicle routing, and transshipment problems. The metaheuristic decomposes the problem into two sub‐problems, a location‐allocation‐transshipment problem and a routing problem. Two metaheuristics of GRASP and tabu search are combined to solve the first sub‐problem in which the routing cost is considered implicitly. The Clarke‐Wright Savings algorithm and a node ejection chains algorithm are used to solve the second sub‐problem.