Optimization of a location – routing – inventory problem with hard time window, resilience, and sustainability considerations

In this paper, a bi-objective, multi-product, and multi-period optimization model for a location-routing-inventory problem is presented, taking into account sustainability considerations in order to transport different products from distribution centers to stores. Minimizing overall costs and maximizing the response ratio to store demands are the main objectives of the problem. In this problem, a hard time window is used to properly schedule the vehicles so that the vehicles reach the stores within a reasonable time frame from the established distribution centers. In the vehicle routes, the complete disruption caused by the earthquake has been considered in the mathematical model, and to face this disruption, the resilience strategy of alternative transportation routes has been used. This problem has the uncertainty of demand and travel time parameters, for which scenario-based stochastic programming has been used. Finally, the case study of the problem and the analysis of sensitivities on the changes of some key parameters are described.

Keywords:

Vehicle routing problem , Location - routing - inventory problem , Sustainability , Resiliency , Time window , Uncertainty