A nested location-routing heuristic using route length estimation

A nested heuristic approach that uses route length approximation is proposed to solve the location-routing problem. A new estimation formula for route length approximation is also developed. The heuristic is evaluated empirically against the sequential method and a recently developed nested method for location routing problems. This testing is carried out on a set of problems of 400 customers and around 15 to 25 depots with good results.

Nested heuristic methods for the location-routeing problem

The concept of 'nested methods' is adopted to solve the location-routeing problem. Unlike the sequential and iterative approaches, in this method we treat the routeing element as a sub-problem within the larger problem of location. Efficient techniques that take into account the above concept and which use a neighbourhood structure inspired from computational geometry are presented. A simple version of tabu search is also embedded into our methods to improve the solutions further. Computational testing is carried out on five sets of problems of 400 customers with five levels of depot fixed costs, and the results obtained are encouraging.