A Research On Optimal Location-Routing Problem And The Algorithm

With the development of information and computer and the emergence of integrated logistic systems and the development in global business, the optimization problem in logistic management especially location routing problem (LRP) became one of core of study problem LRP study the interdependence among the location of facilities (factory, logistic depot) the allocation of suppliers and customers to the facilities, and the vehicle route structure around depots and optimize the problem according to their interdependence. Decrease the logistic cost and improve the efficiency of distribution make the company more competitive.In this paper we proposed a mathematical model for the multiple factory multiple depot location routing problem and taking inventory control decision into consideration. Due to the problem is NP-hard, we propose a heuristic algorithm to solve this problem. First we use a heuristic algorithm like "insert" heuristic algorithm to get the initial solution Second we use a heuristic algorithm like "route improve" heuristic algorithm and combined the Tabu Search algorithm to improve the solution. at last we compute some test problem and give the solution analysis.