A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design

We study a new problem of location-inventory-routing in forward and reverse logistic (LIRP-FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which...

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Main Authors: Qunli Yuchi, Zhengwen He, Zhen Yang, Nengmin Wang
Format: Article
Language:English
Published: Wiley 2016-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2016/3475369
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author Qunli Yuchi
Zhengwen He
Zhen Yang
Nengmin Wang
author_facet Qunli Yuchi
Zhengwen He
Zhen Yang
Nengmin Wang
author_sort Qunli Yuchi
collection DOAJ
description We study a new problem of location-inventory-routing in forward and reverse logistic (LIRP-FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which new goods are produced and damaged goods are repaired by a manufacturer and then returned to the market to satisfy customers’ demands as new ones. Our objective is to minimize the total costs of manufacturing and remanufacturing goods, building DCs, shipping goods (new or recovered) between the manufacturer and opened DCs, and distributing new or recovered goods to customers and ordering and storage costs of goods. A nonlinear integer programming model is proposed to formulate the LIRP-FRL. A new tabu search (NTS) algorithm is developed to achieve near optimal solution of the problem. Numerical experiments on the benchmark instances of a simplified version of the LIRP-FRL, the capacitated location routing problem, and the randomly generated LIRP-FRL instances demonstrate the effectiveness and efficiency of the proposed NTS algorithm in problem resolution.
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institution Kabale University
issn 1026-0226
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publishDate 2016-01-01
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spelling doaj-art-e87e05958fe042db8ee66d1011ead5262025-02-03T01:00:02ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/34753693475369A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network DesignQunli Yuchi0Zhengwen He1Zhen Yang2Nengmin Wang3School of Management, Xi’an Jiaotong University, No. 28 Xianning Road, Xi’an, Shaanxi 710049, ChinaSchool of Management, Xi’an Jiaotong University, No. 28 Xianning Road, Xi’an, Shaanxi 710049, ChinaSchool of Management, Xi’an Jiaotong University, No. 28 Xianning Road, Xi’an, Shaanxi 710049, ChinaSchool of Management, Xi’an Jiaotong University, No. 28 Xianning Road, Xi’an, Shaanxi 710049, ChinaWe study a new problem of location-inventory-routing in forward and reverse logistic (LIRP-FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which new goods are produced and damaged goods are repaired by a manufacturer and then returned to the market to satisfy customers’ demands as new ones. Our objective is to minimize the total costs of manufacturing and remanufacturing goods, building DCs, shipping goods (new or recovered) between the manufacturer and opened DCs, and distributing new or recovered goods to customers and ordering and storage costs of goods. A nonlinear integer programming model is proposed to formulate the LIRP-FRL. A new tabu search (NTS) algorithm is developed to achieve near optimal solution of the problem. Numerical experiments on the benchmark instances of a simplified version of the LIRP-FRL, the capacitated location routing problem, and the randomly generated LIRP-FRL instances demonstrate the effectiveness and efficiency of the proposed NTS algorithm in problem resolution.http://dx.doi.org/10.1155/2016/3475369
spellingShingle Qunli Yuchi
Zhengwen He
Zhen Yang
Nengmin Wang
A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
Discrete Dynamics in Nature and Society
title A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
title_full A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
title_fullStr A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
title_full_unstemmed A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
title_short A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design
title_sort location inventory routing problem in forward and reverse logistics network design
url http://dx.doi.org/10.1155/2016/3475369
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