A heuristic algorithm for a multi-product four-layer capacitated location-routing problem

Article history: Received July 2 2013 Received in revised format September 7 2013 Accepted September 27 2013 Available online September 27 2013 The purpose of this study is to solve a complex multi-product four-layer capacitated locationrouting problem (LRP) in which two specific constraints are taken into account: 1) plants have limited production capacity, and 2) central depots have limited capacity for storing and transshipping products. The LRP represents a multi-product four-layer distribution network that consists of plants, central depots, regional depots, and customers. A heuristic algorithm is developed to solve the four-layer LRP. The heuristic uses GRASP (Greedy Randomized Adaptive Search Procedure) and two probabilistic tabu search strategies of intensification and diversification to tackle the problem. Results show that the heuristic solves the problem effectively. © 2014 Growing Science Ltd. All rights reserved