Nowadays, Location-Routing Problem (LRP) has been developed significantly. However, a question which annoys me for sometime is how can the location as a strategic problem and routing as an operational problem be integrated in a unique model? I know, the location affects the routing in a model.
dear Hossein, in the first look i thought that this two interesting NP-Hard problems are in complementary but then i think and see wow they may be in opposition in some aspects because location problem is an optimization problem that allocate a location that covers as much region as it can of course in the worst situation but in VRP we find the best cost effective way to reach the location off course VRP some time is solved for worst situation but it makes not the worst situation for LP to reach a location i mean VRP in this aspect makes the search space of LP limited and non optimal
what do you think ?
Dear Ali, Thanks. Routing needs to some chosen depots. Therefore, the locations of depots affect the routing phase. However, the routing problem should be solved daily or weekly in some applications. Unlike the routing, the location problem is solved annually or more than one year.
You can consider strategic and operational problem together in one objective function by computing net present values of long term cost.
Dear Nusin, I know we can use long term cost. However, the location cost is much bigger than the routing cost in the objective function. Therefore, the location phase plays an important role in the LRP problem. Moreover, the routing may be changed in each week or month. What does the result routing mean?
I experienced one company in Japan that reconsider the location of depot (DC) based on customer demand every six months. That facility cost does not only mean construct the infrastructure, it can be relocation cost or others, you name it. In such a case, LRP is necessary. It helps.
Dear Sattrawut, your experience is exactly in LRP. In your case, the location phase is not strategic decision, it is operational such as warehouse location. In your case LRP should be implemented. However, what is your idea about integrated airline location and the airplane routing problem?
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