Logistics network optimization considering balanced allocation and vehicle routing

Su Yeon Cho, Young Hae Lee, Dong Won Cho and Mitsuo Gen ()
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Su Yeon Cho: Department of Industrial and Management Engineering, Hanyang University, Ansan, Gyeonggi-do 426-791, South Korea. E-mails: csy@hanyang.ac.kr; yhlee@hanyang.ac.kr; dwcmjcho@hanyang.ac.kr
Young Hae Lee: Department of Industrial and Management Engineering, Hanyang University, Ansan, Gyeonggi-do 426-791, South Korea. E-mails: csy@hanyang.ac.kr; yhlee@hanyang.ac.kr; dwcmjcho@hanyang.ac.kr
Dong Won Cho: Department of Industrial and Management Engineering, Hanyang University, Ansan, Gyeonggi-do 426-791, South Korea. E-mails: csy@hanyang.ac.kr; yhlee@hanyang.ac.kr; dwcmjcho@hanyang.ac.kr
Mitsuo Gen: Fuzzy Logic Systems Institute, Iizuka, Japan.

Maritime Economics & Logistics, 2016, vol. 18, issue 1, 60 pages

Abstract: This article presents an effort to study the complex problem that arises when balanced allocation is integrated with vehicle routing decisions in a logistics network. This integrated problem is frequently encountered in many logistics networks that maximize the efficiency and effectiveness of available warehouses and distribution centers. After modeling the balanced allocation vehicle routing problem (BAVRP) as a multi-objective mixed integer programming problem, we propose a two-stage approach as a solution methodology. This approach decomposes the BAVRP into two independent sub-problems, allocation and routing, and solves them separately. Experimental results show that our two-stage algorithm approach is readily applicable to the BAVRP.

Date: 2016
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