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The Two-Echelon Stochastic Multi-period Capacitated Location-Routing Problem

Imen Ben Mohamed 1, 2 Walid Klibi 1 Ruslan Sadykov 3, 2 Halil Şen 4 François Vanderbeck 5
3 Realopt - Reformulations based algorithms for Combinatorial Optimization
LaBRI - Laboratoire Bordelais de Recherche en Informatique, IMB - Institut de Mathématiques de Bordeaux, Inria Bordeaux - Sud-Ouest
Abstract : Given the emergence of two-echelon distribution systems in several practical contexts, this paper tackles, at the strategic level, a distribution network design problem under uncertainty. This problem is characterized by the two-echelon stochastic multi-period capacitated location-routing problem (2E-SM-CLRP). In the first echelon, one has to decide the number and location of warehouse platforms as well as the intermediate distribution platforms for each period; while fixing the capacity of the links between them. In the second echelon, the goal is to construct vehicle routes that visit ship-to locations (SLs) from operating distribution platforms under a stochastic and time-varying demand and varying costs. This problem is modeled as a two-stage stochastic program with integer recourse, where the first-stage includes location and capacity decisions to be fixed at each period over the planning horizon, while routing decisions of the second echelon are determined in the recourse problem. We propose a logic-based Benders decomposition approach to solve this model. In the proposed approach, the location and capacity decisions are taken by solving the Benders master problem. After these first-stage decisions are fixed, the resulting sub-problem is a capacitated vehicle-routing problem with capacitated multiple depots (CVRP-CMD) that is solved by a branch-cut-and-price algorithm. Computational experiments show that instances of realistic size can be solved optimally within a reasonable time and provide relevant managerial insights on the design problem.
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https://hal.inria.fr/hal-02987266
Contributor : Ruslan Sadykov <>
Submitted on : Tuesday, November 3, 2020 - 5:03:06 PM
Last modification on : Thursday, November 5, 2020 - 12:03:55 PM

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Imen Ben Mohamed, Walid Klibi, Ruslan Sadykov, Halil Şen, François Vanderbeck. The Two-Echelon Stochastic Multi-period Capacitated Location-Routing Problem. 2020. ⟨hal-02987266⟩

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