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Solving the Relaxed Two-Echelon Location Routing Problem with Time Windows

Spijkervet, F.J. (2016) Solving the Relaxed Two-Echelon Location Routing Problem with Time Windows. Master's Thesis / Essay, Industrial Engineering and Management.

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In this thesis the relaxed two-echelon location routing problem with time windows (R-2E-LRPTW) is studied. This problem is studied due to the growing use of legislation based time-windows in city centres, as due to the assumption that driver turnover rates can be reduced by imposing a maximum route duration. In the R-2E-LRPTW hubs are introduced for cross-docking of orders and to extend the reach of the, by maximum route duration capped, distribution network. To solve the R-2E-LRPTW, a mixed integer linear program is formulated. This formulation is tested, improved, and solved by using the CPLEX-optimisation software. Due to the complex nature of the R-2E-LRPTW a heuristic is designed to obtain near-optimal solutions in short computational times. The heuristic is composed of a reduction phase, a construction phase using the insertion-based Clarke and Wright Savings algorithm, and an improvement phase containing local-search and diversification procedures. The heuristic is tested on 90 instances varying in size from 10 to 100 customers. Results show that the heuristic is a good way to solve the R-2E-LRPTW to near optimality in small computational times. However, there is some extra research required to determine if the heuristic is also effective for larger instances (100+ customers).

Item Type: Thesis (Master's Thesis / Essay)
Degree programme: Industrial Engineering and Management
Thesis type: Master's Thesis / Essay
Language: English
Date Deposited: 15 Feb 2018 08:25
Last Modified: 15 Feb 2018 08:25

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