Selection Hyper-Heuristics for Solving the Two-Echelon Location-Routing Problem with Different Intermediate Facilities

Abstract

This work proposes a variation of the location-routing problem (LRP), a problem that interconnects two well-known N P-hard optimisation problems: the vehicle routing problem (VRP) and facility location problem (FLP). There are many mathematical formulations and solution methods for a number of variations already within the literature. However, the inclusion of both already existing and new intermediate facilities within a static model makes this work unique. As a business expands, there will be a need for the business to add to its distribution network. Considering both new and existing intermediate facilities within the model will allow a business to use their current distribution network and grow it efficiently. In this work we propose selection hyper-heuristic methods for our LRP, considering choosing low-level heuristics based on their performance and constructing sequences of them.

Keywords: Metaheuristic, Location-Routing, Hyper-heuristic, Transportation.