The Multi-Depot Routing Allocation Problem

SYNOPTIC ABSTRACT

Current mathematical models for analyzing distribution systems usually consider the long-term “strategic problem” of Distribution Center (DC) location, and the short-term “tactical problem” of vehicle routing, independently and sequentially. While in the short-term, both the capacities and variable costs at the DC's are given, existing vehicle routing models do not consider either the capacities of the variable costs at the DC's. The proposed Multi-Depot Routing Allocation Problem (MDRAP) is that of designing vehicle routes from multiple capacitated depots with different variable costs. It can be formulated as a zero-one integer programming problem. We present an efficient heuristic for the MDRAP based on a sequential savings approach. The computational analysis suggests that DC capacities and variable costs may have significant effects on vehicle routing.

Key Words and Phrases:

• vehicle routing from multiple capacitated depots