Volume 29, Issue 2 (IJIEPR 2018)                   IJIEPR 2018, 29(2): 159-174 | Back to browse issues page


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1- PhD candidate, department of Industrial Engineering, Yazd University, Yazd, Iran
2- Department of Industrial Engineering, Yazd University, Yazd, Iran , mvahdat@yazd.ac.ir
Abstract:   (621 Views)
In this article, we propose a special case of two-echelon location-routing problem (2E-LRP) in cash-in-transit (CIT) sector. To tackle this realistic problem and to make the model applicable, a rich LRP considering several existing real-life variants and characteristics named BO-2E-PCLRPSD-TW including different objective functions, multiple echelons, multiple periods, capacitated vehicles, distribution centers and automated teller machines (ATMs), different type of vehicles in each echelon, single-depot with different time windows is presented. Since, routing plans in the CIT sector ought to be safe and efficient, we consider the minimization of total transportation risk and cost simultaneously as objective functions. Then, we formulate such complex problem in mathematical mixed integer linear programming (MMILP). To validate the presented model and the formulation and to solve the problem, the latest version of ε-constraint method namely AUGMECON2 is applied. This method is especially efficient for solving multi objective integer programing (MOIP) problems and provides the exact Pareto fronts. Results substantiate the suitability of the model and the formulation.
 
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Highlights
  • Propose a special case of 2E-LRP in cash-in-transit sector combining multiple real-life variants such as multi-echelon, multi-period, capacitated vehicles and distribution centers, different time windows and different conflict objective functions to tackle realistic problems. Then, a mathematical mixed-integer linear programming for this rich LRP is formulated. To the best of our knowledge, this is the first mandatory step to apply the model in real-life problems and, on the other hand, a model with just few constraints even with the best solution approaches cannot be applicable in real-world problems.
  • Exploit a solution approach for optimizing the multi-objective mixed integer linear problem with large integer coefficients in order to find the location and number of intermediate facilities among candidate ones, the number of vehicles in each type and in each echelon, the amount of commodities received from the Central Bank and delivered to open logistics center and bank branches/ATMs.

Type of Study: Research | Subject: Logistic & Apply Chain
Received: 2017/07/30 | Accepted: 2018/05/6 | Published: 2018/05/20