Solving Location Routing and Joint Economic Lot Size Problems Simultaneously by Tabu Search

The aims of Location Routing Problem (LRP) are to determine the locations of the warehouses, including their associated locations, and the vehicle routing problems. And, its ojective is to minimize the total warehouse operating cost and transportation cost while without considering the inventory ordering cost and holding cost. Another stream of research considering how to minimize the total inventory ordering and holding cost is the Joint Economic Lot Size (JELS) problem. The main theme of the JELS is that when both supplier and buyer can coordinate and are willing to jointly making lot size decisions will result in lower system total cost than both of them making lot size decisions in sequence. So far, literature discusses these two areas (LRP and JELS) independently while this research tries to combine them together by applying Tabu Search to determine LRP and JELS problems simultaneously. It is believe that the results of our research will be better than previous studies.

Project ID:PB9808-2409
External Project ID:NSC98-2221-E182-037