01514320

Component

This paper presents an integer program formulation of a reliable location-routing problem where built facilities are subject to the risk of probabilistic disruptions. The objective is to determine facility locations, outbound delivery routing, and backup plans under disruptions, so as to minimize the total cost including the facility set-up cost, the expected routing cost, and the customer penalty (if no delivery is possible). A variety of solution approaches (i.e., Lagrangian relaxation with embedded column generation, ring sweep heuristics, and local search) are proposed to solve the problem. The authors also present an alternative continuum approximation model for large-scale instances of this problem. This model not only provides analytical formulas to predict the optimal system cost but also can be used to generate high quality feasible solutions. A series of numerical case studies are conducted to test the performance of the proposed models and solution algorithms. Managerial insights are also drawn on how various system parameters impact the optimal solution.

This paper was sponsored by TRB committee ADB30(9) Paper Reveiw Group #5.

01503729

14-0270

English

22p

2014

Transportation Research Board 93rd Annual Meeting

Digital/other

Figures; References; Tables

Algorithms; Case studies; Costs; Delivery service; Facilities; Integer programming; Location; Mathematical models; Routing

Disruptions

Highways; Planning and Forecasting; Terminals and Facilities; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2014 Paper #14-0270

TRIS, TRB, ATRI

Jan 27 2014 2:11PM