Mathematical programming modeling and resolution of the location-routing problem in urban logistics

Abstract

The implementation of urban distribution centers near to city centers to allow freight consolidation is a widely extended initiative worldwide, seeking to improve traffic congestion and quality of life in downtown, among others. This paper considers the problem of locating urban distribution centers and proposes an exact method, based on integer linear programming for strategic, tactical and operational decision-making. The aim is to solve, in an integer manner, location, sizing and operation (vehicle routing) problems in these logistics platforms. The model is validated using real-data taken from the city of SaintÉtienne, France. Computational experiments are also carried out in order to compare the proposed model with existing procedures from the literature. Results show the efficiency and effectiveness of the proposed model and its applicability in real decision-making for medium sized data sets.