| Summary: | Under growing concerns with sustainability in global and changing market, cooperative and competitive logistic is becoming a keen issue to provide a manufacturing system aligned to sales and operations planning (S&OP). As a key technology for such deployment, this paper concerns with simultaneous pickup and delivery VRP and proposes a hybrid method aiming at a rational decision aid for logistics optimization. In its procedure, the initial solution is derived from the Weber basis saving method that accounts transportation cost in terms of the bi-linear model of distance and weight. Then, to update the tentative solution in turn, a modified tabu search developed previously by us is used successfully. Though this practical cost accounting has been used popularly in the strategic location problems, it has never been applied to the operational problem like VRP. The idea is possible to extend naturally to a non-linear or generalized Weber model to be more practical. Since the developed method is practical and adaptive even to large problems, it has high solution ability available for real world applications. Finally, numerical experiments are taken place to validate the effectiveness of the proposed method through comparison with an alternative manner to accomplish the present task.
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