A two-echelon location-routing model for designing a pooled distribution supply chain

Abstract

In literature, the majorities of paper on the subject of modeling pooled distribution supply chain (SC) are based on vehicle routing problem and propose models for, only, the operational level of the supply chain. Modeling pooled SC is a problem including a strategic decision consisting of designing a network by locating a number of logistical platforms and tactical /operational decisions dealing with the customer allocation and vehicle routing. So, it will be interesting to propose and study a model as two echelons Location Routing problem (2E-LRP) for this type of chain for a more comprehensive resolution that separate decision levels. We opt for a multi-sourcing and multi-products 2E-LRP in which routes can end at different depots than the starting one in contrary of classical formulations. We add to usual constraints of 2E-LRP those specific to pooling. We propose a mixed integer linear programming (MILP) formulation for this problem. To measure the performance of our method, we have used Matlab solver to solve the MILP using extended known 2E-LRP instances and different configurations of costumers. The results obtained by comparing a collaboration scenario and non-collaboration one, show that collaboration leads to a reduction in transport costs, travel distances, and CO2 emissions in addition to the improvement of the vehicle load rate. This work opens up new lines of research in this area.

Combining Facility Location and Routing Decisions in Sustainable Urban Freight Distribution under Horizontal Collaboration: How Can Shippers Be Benefited?

“…They proposed an approach using mathematical modeling with multiple objectives, for tactical and operational decisionmaking to explore the relationship between the delivery cost and environmental impact. In our previous works [33,34], we quantified the economic and the environmental benefits of horizontal collaboration using single objective 2E-LRP model with a posteriori evaluation of the impact of collaboration in CO2 emissions based in travelled distances.…”

Presenting a Multi-Start Hybrid Heuristic for Solving the Problem of Two-Echelon Location-Routing Problem with Simultaneous Pickup and Delivery (2E-LRPSPD)

“…Time constraints have been added to form the 2E-LRP with time window [56][57][58]. Ouhader and Elkyal [59] investigated a multisourcing and multiproduct 2E-LRP to design a pooled distribution supply chain, in which the route can end at different depots rather than the starting one of the classical 2E-LRP. Pichka et al [60] addressed the two-echelon open location routing problem (2E-OLRP), in which the first-echelon and second-echelon vehicles do not return to the starting point.…”