A Two-Phase Solution Method For The Integrated Hub Location And Vehicle Routing Problem

This paper deals with a hub location-routing problem which integrates the hub location problem and the multidepot vehicle routing problem. To solve these problems simultaneously we present asolution framework which divides the problem into two sub-problems: the hub location problem in the first stage and the multi-depot vehicle routing problem in the second one. The two-phase approach hybridizes two meta-heuristics, an ant colony optimization algorithm for the first stage with a genetic algorithm for the second stage, respectively. We determine the locations of prescribed p hubs within a set of candidate potential hubs, the allocation of each customer node to each selected hub as well as the vehicle routes for each hub in order to minimize the sum of the fixed hub costs, traveling costs and fixed vehicle costs. The performance of the proposed solution method is investigated through a computational experiment. Keywords- Hub Location-Routing, Meta-Heuristic, Ant Colony Optimization, Genetic Algorithm.