Multi-objective metaheuristics for a location-routing problem with multiple use of vehicles on real data and simulated data

We address an integrated logistic system where decisions on location of depot, vehicle routing and assignment of routes to vehicles are considered simultaneously. Total cost and workload balance are common criteria influencing decision-making. Literature on location-routing problems addressed the location and vehicle routing decisions with a common assumption of assigning one route to one vehicle. However, the cost of acquiring vehicles (and crew) is often more significant than the routing cost. This notion of assigning several routes to a vehicle during the routing procedure is explored in our integrated model. We apply metaheuristics of tabu search and simulated annealing on real data and simulated data, to compare their performances under two versions: simultaneous or sequential routes assignment to vehicles. A new statistical procedure is proposed to compare two algorithms on the strength of their multi-objective solutions. Results show that the simultaneous versions have advantage over the sequential versions in problems where routes are capacity-constrained, but not in the time dimension. The simultaneous versions are also more effective in generating non-dominated solutions than the sequential versions.