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Modeling cost-delivery trade-offs for distribution logistics by a generalized PVRP model

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Abstract

This article provides a mathematical model to support management in making decisions about cost-delivery trade-offs in the case of cost-delivery flexibilities in distribution logistics. The optimization problem can be modeled as a bi-objective periodic vehicle routing problem, which is known as NP-hard. In the periodic vehicle routing problem considered in this study, no delivery patterns are pre-defined, instead the patterns are the result of the optimization process of the model. In addition, delivery time flexibilities are incorporated in the model. A heuristic solution method for realistic problem sizes is based on the tabu search procedure, and a real case study illustrates the applicability of the solution concept.

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Acknowledgments

The financial support by the Federal Ministry of Economy, Family and Youth and the National Foundation for Research, Technology and Development is gratefully acknowledged.

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Authors and Affiliations

  1. Christian Doppler Laboratory for efficient intermodal transport operations, Institute for Production and Logistics Management, Johannes Kepler University Linz, Altenbergerstraße 69, 4040, Linz, Austria

    Andrea Kurz

  2. Institute for Production and Logistics Management, Johannes Kepler University Linz, Altenbergerstraße 69, 4040, Linz, Austria

    Günther Zäpfel

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  1. Andrea Kurz
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  2. Günther Zäpfel
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Correspondence to Andrea Kurz.

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Kurz, A., Zäpfel, G. Modeling cost-delivery trade-offs for distribution logistics by a generalized PVRP model. J Bus Econ 83, 705–726 (2013). https://doi.org/10.1007/s11573-013-0678-0

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  • DOI: https://doi.org/10.1007/s11573-013-0678-0

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