Location-Routing Problem

  • Anahita Hassanzadeh
  • Leyla Mohseninezhad
  • Ali Tirdad
  • Faraz Dadgostari
  • Hossein Zolfagharinia
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


The aim of this chapter is to survey the state of the art in location-routing. The location-routing problem (LRP) is a research area within location analysis, with the distinguishing property of paying special attention to underlying issues of vehicle routing. Since the Vehicle-Routing Problem (VRP), which is a complex problem itself, is known as a basic component of LRPs, the main concepts of VRP are introduced in the first section. In the second section, the definition, applications and classifications of LRP are discussed. The next section is dedicated to the LRP models and introduces some basic mathematical models of this field. Solution techniques are presented in the fourth section. Finally, three case studies regarding applications of LRP in real world are briefly reviewed.


Tabu Search Travel Salesman Problem Vehicle Route Demand Node Vehicle Capacity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Averbakh I, Berman O (1995a) Probabilistic sales-delivery man and sales-delivery facility location problems on a tree. Transport Sci 29:184–197CrossRefGoogle Scholar
  2. Averbakh I, Berman O (1995b) Routing and location-routing p-delivery men problems on a path. Transport Sci 28:162–166CrossRefGoogle Scholar
  3. Averbakh I, Berman O (2002) Minmax p-traveling salesmen location problems on a tree. Ann Oper Res 110:55–62CrossRefGoogle Scholar
  4. Bender V, Strohmeier E (1979) Largerstandorto imierung und Fuhrparkeinsatzplanung in der konsumguter-industrie. Zen Sconrift Fur Oper Res 23:89–104Google Scholar
  5. Billionnet A, Elloumi S, Grouz-Djerbi L (2005) Designing radio-mobile access networks based on synchronous digital hierarchy rings. Comput Oper Res 32:379–394CrossRefGoogle Scholar
  6. Boventer V (1961) The relationship between transportation costs and location rent in transportation problems. J Regional Sci 3:27–40CrossRefGoogle Scholar
  7. Bruns A, Klose A, Stähly P (2000) Restructuring of Swiss parcel delivery services. OR Spektrum 22:285–302CrossRefGoogle Scholar
  8. Caballero R, Gonzalez M, Guerrero FM, Molina J, Paralera C (2007) Solving a multiobjective location routing problem with a metaheuristic based on tabu search. Application to a real case in Andalusia. Eur J Oper Res 177(3):1751–1763Google Scholar
  9. Chan Y, Carter WB, Burnes MD (2001) A multiple-depot, multiple-vehicle, location-routing problem with stochastically processed demands. Comput Oper Res 28:803–826CrossRefGoogle Scholar
  10. Christofides N, Eilon S (1969) An algorithm for the vehicle dispatching problem. Oper Res Quart 20:309–318CrossRefGoogle Scholar
  11. Dantzig GB, Fulkerson DR (1954) Minimizing the number of tankers to meet a fixed schedule. Nav Res Logist Q 1:217–222CrossRefGoogle Scholar
  12. Daskin MS (1996) Network and discrete location: models, algorithms and applications. J Transp Geogr 4:302–303CrossRefGoogle Scholar
  13. Drezner Z (1982) Fast algorithms for the round trip location problem. IIE Trans 14:243–248Google Scholar
  14. Ghiani G, Laporte G (1999) Eulerian location problems. Networks 34:291–302CrossRefGoogle Scholar
  15. Glover F (1995) Tabu search fundamentals and uses. Technical paper, University of Colorado, Boulder, COGoogle Scholar
  16. Glover F, Taillard E, De Werra D (1993) A user’s guide to tabu search. Ann Oper Res 41:3–28CrossRefGoogle Scholar
  17. Golden BL, Magnanti TL, Nguyen HQ (1997) Implementing vehicle routing algorithms. Networks 7:113–148CrossRefGoogle Scholar
  18. Gunnarsson H, Rönnqvist M, Carlsson D (2006) A combined terminal location and ship routing problem. J Oper Res Soc 57:928–938CrossRefGoogle Scholar
  19. Higgins JC (1972) On the merits of simple models in distribution planning. Int J Phys Distrib 2:144–148CrossRefGoogle Scholar
  20. Jacobsen SK, Madsen OBG (1978) On the location of transfer points in a two-level newspaper delivery system – a case study. Presented at the international symposium on locational decisions, 24–28Google Scholar
  21. Jacobsen SK, Madsen OBG (1980) A comparative study of heuristics for a two-level routing-location problem. Eur J Oper Res 5:378–387CrossRefGoogle Scholar
  22. Jamil M, Batta R, Malon DM (1994) The traveling repairperson home base location problem. Transp Sci 28:150–161CrossRefGoogle Scholar
  23. Karp R (1972) Reducibility among combinatorial problems. Plenum, New York, pp 85–104Google Scholar
  24. Kulcar T (1996) Optimizing solid waste collection in Brussels. Eur J Oper Res 90:26–44CrossRefGoogle Scholar
  25. Labbé M, Rodríguez-Martín I, Salazar-Gonzalez JJ (2004) A branch-and-cut algorithm for the plant-cycle location problem. J Oper Res Soc 55:513–520CrossRefGoogle Scholar
  26. Laporte G (1988) Location-routing problems. In: Methods and studies. North-Holland, Amsterdam, pp 163–198Google Scholar
  27. Laporte G, Norbert Y (1981) An exact algorithm for minimizing routing and operating costs in depot location. Eur J Oper Res 6:224–226CrossRefGoogle Scholar
  28. Laporte G, Nobert Y, Pelletier P (1983) Hamiltonian location problems. Eur J Oper Res 12:82–89CrossRefGoogle Scholar
  29. Laporte G, Nobert Y, Desrochers M (1985) Optimal routing under capacity and distance restrictions. Oper Res 33:1050–1073CrossRefGoogle Scholar
  30. Laporte G, Nobert Y, Taillefer S (1988) Solving a family of multi-depot vehicle routing and location-routing problems. Transp Sci 22:161–172CrossRefGoogle Scholar
  31. Lawrence RM, Pengilly PJ (1969) The number and location of depots required for handling products for distribution to retail stores in South-East England. Oper Res Quart 20:23–32CrossRefGoogle Scholar
  32. Lee Y, Kim S-I, Lee S, Kang K (2003) A location-routing problem in designing optical internet access with WDM systems. Photon Netw Commun 6:151–160CrossRefGoogle Scholar
  33. Lin CKY, Chow CK, Chen A (2002) A location-routing-loading problem for bill delivery services. Comput Ind Eng 43:5–25CrossRefGoogle Scholar
  34. Lin CKY, Kwok RCW (2006) Multi-objective metaheuristics for a location-routing problem with multiple use of vehicles on real data and simulated data. Eur J Oper Res 175:1833–1849CrossRefGoogle Scholar
  35. Magnanti TL (1981) Combinatorial optimization and vehicle fleet planning: perspectives and prospect. Networks 11:179–214CrossRefGoogle Scholar
  36. Maranzana FE (1965) On the location of supply points to minimize transport costs. Oper Res Quart 15:261–270CrossRefGoogle Scholar
  37. McLain DR, Durchholz ML, Wilborn WB (1984) U.S.A.F. EDSA routing and operating location selection study. Report XPSR84–3, Operations Research Division, Directorate of Studies and AnalysisGoogle Scholar
  38. Mercer A, Canley MF, Rand GK (1978) Operational distribution research. Taylor and Francis, LondonGoogle Scholar
  39. Min H, Jayaraman V, Srivastava R (1998) Combined location-routing problems: a synthesis and future research directions. Eur J Oper Res 108:1–15CrossRefGoogle Scholar
  40. Murty KG, Djang PA (1999) The U.S. army national guard’s mobile training simulators location and routing problem. Oper Res 47:175–182CrossRefGoogle Scholar
  41. Nagy G, Salhi S (2007) Location-routing: issues, models and methods. Oper Res 177:649–672CrossRefGoogle Scholar
  42. Nambiar JM, Gelders LF, Van Wassenhove LN (1989) Plant location and vehicle routing in the Malaysian rubber smallholder sector: a case study. Eur J Oper Res 38:14–26CrossRefGoogle Scholar
  43. Or I, Pierskalla WP (1979) A transportation, location-allocation model for regional blood banking. AIIE Trans 11:86–95CrossRefGoogle Scholar
  44. Perl J, Daskin MS (1985) A warehouse location-routing problem. Transp Res 5:381–396CrossRefGoogle Scholar
  45. Semet F, Taillard E (1993) Solving real-life vehicle routing problems efficiently using tabu search. Ann Oper Res 41:469–488CrossRefGoogle Scholar
  46. Srikar B, Srivastava R (1984) Solution methodology for location routing problem. In: ORSA/TIMS conferenceGoogle Scholar
  47. Toth P, Vigo D (2002) An overview of vehicle routing problems. In: Toth P, Vigo D (eds) The vehicle routing problem. pp 1–26, Society for Industrial and Applied Mathematics, PhiladelphiaGoogle Scholar
  48. Tuzun D, Burke LI (1999) A two-phase tabu search approach to the location routing problem. Eur J Oper Res 116:87–99CrossRefGoogle Scholar
  49. Wasner M, Zäpfel G (2004) An integrated multi-depot hub location vehicle routing model for network planning of parcel service. Int J Prod Econ 90:403–419CrossRefGoogle Scholar
  50. Watson-Gandy CDT, Dohrn PJ (1973) Depot location with van salesmen – a practical approach. Omega 11:321–329CrossRefGoogle Scholar
  51. Webb MHJ (1968) Cost functions in the location of depots for multiple-delivery journeys. Oper Res Quar 19:11–320Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  • Anahita Hassanzadeh
    • 1
  • Leyla Mohseninezhad
    • 1
  • Ali Tirdad
    • 1
  • Faraz Dadgostari
    • 1
  • Hossein Zolfagharinia
    • 1
  1. 1.Department of Industrial EngineeringAmirkabir University of TechnologyTehranIran

Personalised recommendations