Non-Dominated Sorting Genetic Algorithm for Bi-Objective Transportation Location Routing Problem under Demand Uncertainty

Effective management of distribution of manufactured goods plays an important role in the success and increasing of competition' levels in manufacturing organization. Location routing problem is a problem in which location of distribution center and vehicle routing are considered simultaneously. In this paper, a two-stage stochastic programming model and a meta-heuristic approach are presented for the Transportation Location Routing Problem. Customers can order different products. Capacitated central centers transport different products to open intermediary Distribution Centers (IDCs) and then these products are distributed from IDCs between the customers. A bi-objective optimization model is developed. Two objectives, minimization of the overall costs and maximization of the total served demand, are addressed. Due to the high complexity of the problem, we use the Non-Dominated Sorting Genetic Algorithm to solve the problem. The initial parameters of this algorithm is set with Taguchi method. Computational results show the effectiveness of the proposed solution method to solve problems in different dimensions.