Green open location-routing problem considering economic and environmental costs

Abstract

This paper introduces a new bi-objective vehicle routing problem that integrates the Open Location Routing Problem (OLRP), recently presented in the literature, coupled with the growing need for fuel consumption minimization, named Green OLRP (G-OLRP). Open routing problems (ORP) are known to be NP-hard problems, in which vehicles start from the set of existing depots and are not required to return to the starting depot after completing their service. The OLRP is a strategic-level problem involving the selection of one or many depots from a set of candidate locations and the planning of delivery radial routes from the selected depots to a set of customers. The concept of radial paths allows us to use a set of constraints focused on maintaining the radiality condition of the paths, which significantly simplifies the set of constraints associated with the connectivity and capacity requirements and provides a suitable alternative when compared with the elimination problem of sub-tours traditionally addressed in the literature. The emphasis in the paper will be placed on modeling rather than solution methods. The model proposed is formulated as a bi-objective problem, considering the minimization of operational costs and the minimization of environmental effects, and it is solved by using the epsilon constraint technique. The results illustrate that the proposed model is able to generate a set of trade-off solutions leading to interesting conclusions about the relationship between operational costs and environmental impact.

Keywords

• Open Location-Routing Problem
• Green Vehicle Routing Problem
• Green logistics
• Mixed-Integer Linear Programming
• Vehicle Routing Problem