A Bi-Level Programming Approach to the Location-Routing Problem with Cargo Splitting under Low-Carbon Policies

Cong Wang, Zhongxiu Peng and Xijun Xu
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Cong Wang: School of Economics & Management, Southeast University, Nanjing 211189, China
Zhongxiu Peng: School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China
Xijun Xu: School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China

Mathematics, 2021, vol. 9, issue 18, 1-34

Abstract: To identify the impact of low-carbon policies on the location-routing problem (LRP) with cargo splitting (LRPCS), this paper first constructs the bi-level programming model of LRPCS. On this basis, the bi-level programming models of LRPCS under four low-carbon policies are constructed, respectively. The upper-level model takes the engineering construction department as the decision-maker to decide on the distribution center’s location. The lower-level model takes the logistics and distribution department as the decision-maker to make decisions on the vehicle distribution route’s scheme. Secondly, the hybrid algorithm of Ant Colony Optimization and Tabu Search (ACO-TS) is designed, and an example is introduced to verify the model’s and algorithm’s effectiveness. Finally, multiple sets of experiments are designed to explore the impact of various low-carbon policies on the decision-making of the LRPCS. The experimental results show that the influence of the carbon tax policy is the greatest, the carbon trading and carbon offset policy have a certain impact on the decision-making of the LRPCS, and the influence of the emission cap policy is the least. Based on this, we provide the relevant low-carbon policies advice and management implications.

Keywords: location-routing problem; low-carbon policies; bi-level programming model; cargo splitting; hybrid algorithm (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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