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Authors: Joel-Novi Rodríguez-Escoto ; Samuel Nucamendi-Guillén and Elias Olivares-Benitez

Affiliation: Facultad de Ingeniería, Universidad Panamericana, Álvaro del Portillo 49, Zapopan, México

Keyword(s): Location-routing Problem, Multi-objective Optimization, Exact Methods, AUGMECON2, Goal Programming, Heterogeneous Fleets.

Abstract: This paper investigates the effect of the hiring cost over transportation cost and the capacity utilization for the vehicles used. This analysis is conducted on a multi-depot open location-routing problem. The problem consists of determining the optimal number of depots to open, as well as the design of the open routes in order to satisfy the demand for all of the customers while seeking the best trade-off between the total traveling and opening cost. To solve the problem, we propose a bi-objective mixed-integer linear model, which is solved using two different approaches: the augmented epsilon constraint 2 (AUGMECON2) method and the weighting revised multi-choice goal programming (WRMCGP) method. Both approaches are implemented, solving benchmark instances and comparing the quality of the Pareto fronts in terms of multi-objective metrics. Accordingly, the results indicate that AUGMECON2 performs better than WRMCGP concerning the quality of the Pareto Front and the elapsed CPU time, for instances with a homogeneous fleet. However, the WRMCGP reported the best solution time in the heterogeneous instances. In summary, considering heterogeneous fleets, the results demonstrate that the hiring cost can be reduced up to 85%, with 73% more vehicle utilization on average. (More)

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Paper citation in several formats:
Rodríguez-Escoto, J.; Nucamendi-Guillén, S. and Olivares-Benitez, E. (2021). Analysis of the Hiring Cost Impact with a Bi-objective Model for the Multi-depot Open Location Routing Problem. In Proceedings of the 10th International Conference on Operations Research and Enterprise Systems - ICORES; ISBN 978-989-758-485-5; ISSN 2184-4372, SciTePress, pages 425-432. DOI: 10.5220/0010266604250432

@conference{icores21,
author={Joel{-}Novi Rodríguez{-}Escoto. and Samuel Nucamendi{-}Guillén. and Elias Olivares{-}Benitez.},
title={Analysis of the Hiring Cost Impact with a Bi-objective Model for the Multi-depot Open Location Routing Problem},
booktitle={Proceedings of the 10th International Conference on Operations Research and Enterprise Systems - ICORES},
year={2021},
pages={425-432},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010266604250432},
isbn={978-989-758-485-5},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 10th International Conference on Operations Research and Enterprise Systems - ICORES
TI - Analysis of the Hiring Cost Impact with a Bi-objective Model for the Multi-depot Open Location Routing Problem
SN - 978-989-758-485-5
IS - 2184-4372
AU - Rodríguez-Escoto, J.
AU - Nucamendi-Guillén, S.
AU - Olivares-Benitez, E.
PY - 2021
SP - 425
EP - 432
DO - 10.5220/0010266604250432
PB - SciTePress