A case study of two-echelon multi-depot vehicle routing problem

Tianqi Yu, Purdue University

Abstract

The Vehicle Routing Problem (VRP) is a classic combinatorial optimization problem and a topic still studied for practical applications. Current research focuses on single echelon distribution systems such as distribution centers serving customers. However, in typical distribution, goods flows among regional distribution centers, local warehouses and customers, defined as a two-echelon network. The two-echelon multiple depot VRP problem is documented and applied to two stages illustrated by a small scale computational example. In the first stage, the simulated annealing algorithm is employed to determine the routes between local warehouses and final customers. For the second stage, trial-and-error is applied to obtain the number and location of regional distribution centers and the routes between regional distribution centers and local warehouses. Matlab is utilized to simulate annealing iterations and cost functions are analyzed. The convergence tendency of simulated annealing is depicted in figures by Matlab coding. Contributions include demonstration between the SA algorithm and a specific combinatorial optimization problem, and an application of the algorithm.^

Degree

M.Sc.I.T.

Advisors

Edie Schmidt, Purdue University.

Subject Area

Operations research

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