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| Main Authors: | , , |
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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2502.08403 |
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| _version_ | 1866929711982051328 |
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| author | Dereli, Banu Ulusoy Hiermann, Gerhard Schiffer, Maximilian |
| author_facet | Dereli, Banu Ulusoy Hiermann, Gerhard Schiffer, Maximilian |
| contents | Logistic service providers increasingly focus on two-echelon distribution systems to efficiently manage thousands of deliveries in urban environments. Effectively operating such systems requires designing cost-efficient delivery networks while addressing the challenges of increasing e-commerce demands. In this context, we focus on a two-echelon location routing problem with mobile depots and direct shipment, where decisions involve locating micro-depots, and designing first and second-level routes. Our model also incorporates the flexibility of direct shipments from the main depot to customers.
To solve such large-scale problems efficiently, we propose a metaheuristic approach that integrates a set cover problem with an adaptive large neighborhood search (ALNS). Our ALNS approach generates a set of promising routes and micro-depot locations using destroy and repair operators while using a local search for intensification. We then utilize the set cover problem to find better network configurations. Additionally, we present a decomposition-based cluster-first, route-second approach to solve large-scale instances efficiently. We show the efficacy of our algorithm on well-known benchmark datasets and provide managerial insights based on a case study for the city of Munich. Our decomposition approach provides comparable results while reducing computational times by a factor of 15. Our case study results show that allowing direct shipment can reduce total costs by 4.7% and emissions by 11%, while increasing truck utilizations by 42%. We find that integrating both stationary and mobile micro-depots, along with allowing direct shipments, can reduce total costs by 5.9% compared to traditional two-echelon delivery structures. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2502_08403 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Solving Large-Scale Two-Echelon Location Routing Problems in City Logistics Dereli, Banu Ulusoy Hiermann, Gerhard Schiffer, Maximilian Optimization and Control Logistic service providers increasingly focus on two-echelon distribution systems to efficiently manage thousands of deliveries in urban environments. Effectively operating such systems requires designing cost-efficient delivery networks while addressing the challenges of increasing e-commerce demands. In this context, we focus on a two-echelon location routing problem with mobile depots and direct shipment, where decisions involve locating micro-depots, and designing first and second-level routes. Our model also incorporates the flexibility of direct shipments from the main depot to customers. To solve such large-scale problems efficiently, we propose a metaheuristic approach that integrates a set cover problem with an adaptive large neighborhood search (ALNS). Our ALNS approach generates a set of promising routes and micro-depot locations using destroy and repair operators while using a local search for intensification. We then utilize the set cover problem to find better network configurations. Additionally, we present a decomposition-based cluster-first, route-second approach to solve large-scale instances efficiently. We show the efficacy of our algorithm on well-known benchmark datasets and provide managerial insights based on a case study for the city of Munich. Our decomposition approach provides comparable results while reducing computational times by a factor of 15. Our case study results show that allowing direct shipment can reduce total costs by 4.7% and emissions by 11%, while increasing truck utilizations by 42%. We find that integrating both stationary and mobile micro-depots, along with allowing direct shipments, can reduce total costs by 5.9% compared to traditional two-echelon delivery structures. |
| title | Solving Large-Scale Two-Echelon Location Routing Problems in City Logistics |
| topic | Optimization and Control |
| url | https://arxiv.org/abs/2502.08403 |