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Location-routing and cost-sharing models under joint distribution

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Abstract

This article introduces the concept of joint distribution context into the location-routing problem (LRP) to tackle the issue of resource waste and high costs in distribution centers (DCs) for multiple companies. Fixed costs of constructing DCs, fixed costs of hiring vehicles, and routing costs are taken into account when constructing the mixed integer programming (MIP) model. A two-stage algorithm is designed to solve this problem. In the first stage, K-means clustering is used to group demand nodes with vehicle capacity constraints. In the second stage, the simplified LRP model is solved by Lingo, and locations of DCs and routing schemes are obtained. Additionally, a cost-sharing model based on the desirability function is developed to address the cost allocation problem among companies. The results and sensitivity analysis demonstrate that the joint distribution can effectively reduce costs.

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Funding

Fundamental Research Funds for the Central Universities, China, Grant ID:2023JBMC005. The authors would like to express his gratitude to the reviewers for their time and expertise.

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Authors and Affiliations

  1. Hebei Jiaotou Logistics Co., Ltd, Shijiazhuang, 050090, Hebei, People’s Republic of China

    Binghui Qie

  2. School of Modern Post, Beijing University of Posts and Telecommunications, No.10 Xitucheng Road, Haidian District, Beijing, 100876, People’s Republic of China

    Xun Weng

  3. Hebei Taihang Food Co., Ltd, Shijiazhuang, 050204, Hebei, People’s Republic of China

    Zhiwei Sun

  4. School of Traffic and Transportation, Beijing Jiaotong University, No.3 Shangyuancun, Haidian District, Beijing, 100044, People’s Republic of China

    Minyu Jin & Runfeng Yu

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  1. Binghui Qie
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  2. Xun Weng
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  4. Minyu Jin
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Contributions

Binghui Qie and Zhiwei Sun wrote the main manuscript text. Xun Weng collected the data and supervised. Minyu Jin contributed data or analysis tools. Zhiwei Sun Performed the analysis. Runfeng Yu and Minyu Jin conceived and designed the analysis. All authors reviewed the manuscript.

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Correspondence to Runfeng Yu.

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Qie, B., Weng, X., Sun, Z. et al. Location-routing and cost-sharing models under joint distribution. Cluster Comput 27, 5879–5891 (2024). https://doi.org/10.1007/s10586-024-04282-0

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