Bi- and multi-objective location routing problems: classification and literature review

Abstract

AbstractThe facility location problem and the vehicle routing problem are highly interdependent and critical parts of any efficient and cost-effective supply chain. The location of facilities heavily affects the design of distribution routes between the facilities and various demand nodes. Within locational analysis, the location-routing problem is a mathematical optimization problem that considers the underlying issues of vehicle routing and simultaneously optimizes the location of facilities and the design of distribution routes. Since, in real-life applications, it is common that decision-makers encounter more than one, often conflicting objectives, the problem can be stated in term of multi-objective optimization. This paper reviews 80 journal articles published in the field of bi- and multi-objective location-routing problems between 2014 and 2020. Included papers are classified based on several factors covering model assumptions and characteristics, objectives, solution approaches, and application area. For each application area, individual papers are presented and discussed. The paper concludes with remarks and suggestions for future research.