Modeling a robust multi-objective locating-routing problem with bounded delivery time using meta-heuristic algorithms

Abstract

Purpose This study aims to investigate a locating-routing-allocating problems and the supply chain, including factories distributor candidate locations and retailers. The purpose of this paper is to minimize system costs and delivery time to retailers so that routing is done and the location of the distributors is located. Design/methodology/approach The problem gets closer to reality by adding some special conditions and constraints. Retail service start times have hard and soft time windows, and each customer has a demand for simultaneous delivery and pickups. System costs include the cost of transportation, non-compliance with the soft time window, construction of a distributor, purchase or rental of a vehicle and production costs. The conceptual model of the problem is first defined and modeled and then solved in small dimensions by general algebraic modeling system (GAMS) software and non-dominated sorting genetic algorithm II (NSGAII) and multiple objective particle swarm optimization (MOPSO) algorithms. Findings According to the solution of the mathematical model, the average error of the two proposed algorithms in comparison with the exact solution is less than 0.7%. Also, the algorithms’ performance in terms of deviation from the GAMS exact solution, is quite acceptable and for the largest problem (N = 100) is 0.4%. Accordingly, it is concluded that NSGAII is superior to MOSPSO. Research limitations/implications In this study, since the model is bi-objective, the priorities of decision makers in choosing the optimal solution have not been considered and each of the objective functions has been given equal importance according to the weighting methods. Also, the model has not been compared and analyzed in deterministic and robust modes. This is because all variables, except the one that represents the uncertainty of traffic modes, are deterministic and the random nature of the demand in each graph is not considered. Practical implications The results of the proposed model are valuable for any group of decision makers who care optimizing the production pattern at any level. The use of a heterogeneous fleet of delivery vehicles and application of stochastic optimization methods in defining the time windows, show how effective the distribution networks are in reducing operating costs. Originality/value This study fills the gaps in the relationship between location and routing decisions in a practical way, considering the real constraints of a distribution network, based on a multi-objective model in a three-echelon supply chain. The model is able to optimize the uncertainty in the performance of vehicles to select the refueling strategy or different traffic situations and bring it closer to the state of certainty. Moreover, two modified algorithms of NSGA-II and multiple objective particle swarm optimization (MOPSO) are provided to solve the model while the results are compared with the exact general algebraic modeling system (GAMS) method for the small- and medium-sized problems.