Optimization of a Two-Echelon Location Lot-Sizing Routing Problem with Deterministic Demand

Abstract

This paper aims to solve a multiperiod location lot-sizing routing problem with deterministic demand in a two-echelon network composed of a single factory, a set of potential depots, and a set of customers. Solving this problem involves making strategic decisions such as location of depots as well as operational and tactical decisions which include customers' assignment to the open depots, vehicle routing organization, and inventory management. A mathematical model is presented to describe the problem and a genetic algorithm combined with a local search procedure is proposed to solve it and is tested over three sets of instances.