Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions

A smooth operation of the fourth party logistics supply chain network requires the cooperation of multiple distribution centers and third party logistics. Any unexpected disruption caused by a certain distribution center may lead to serious consequences to the whole fourth party logistics supply cha...

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Main Authors: Min Huang, Liwei Dong, Hanbin Kuang, Xingwei Wang
Format: Article
Language:English
Published: IEEE 2021-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/9452171/
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author Min Huang
Liwei Dong
Hanbin Kuang
Xingwei Wang
author_facet Min Huang
Liwei Dong
Hanbin Kuang
Xingwei Wang
author_sort Min Huang
collection DOAJ
description A smooth operation of the fourth party logistics supply chain network requires the cooperation of multiple distribution centers and third party logistics. Any unexpected disruption caused by a certain distribution center may lead to serious consequences to the whole fourth party logistics supply chain. Therefore, we study the reliable fourth party logistics location-routing problem in the network design considering disruption risk of distribution centers. In addition, to minimize the total cost of the proposed problem, a scenario-based integer programming model is established to locate distribution centers, to select proper third party logistic providers, and to accomplish the vehicle routing from distribution centers to customers. Then, a two-level heuristic framework is proposed to handle this NP-hard problem through dividing the original problem into two sub-problems. One is the reliable fourth party logistics location assignment problem, and the other is the fourth party logistics vehicle routing problem. These two sub-problems can be independently solved and iteratively composed to get to the solution of the original problem. Furthermore, numerical experiments are designed, and the effectiveness of the heuristic framework is tested by comparing the quality of solutions and running time with those calculated by using CPLEX. Managerial insights are also provided based on the calculation results.
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spelling doaj.art-3f8593fe66354049a12297d3f4b5d9962022-12-22T03:12:34ZengIEEEIEEE Access2169-35362021-01-019848578487010.1109/ACCESS.2021.30884269452171Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of DisruptionsMin Huang0https://orcid.org/0000-0003-3793-968XLiwei Dong1https://orcid.org/0000-0002-4106-4428Hanbin Kuang2https://orcid.org/0000-0003-4830-5623Xingwei Wang3State Key Laboratory of Synthetical Automation for Process Industries, College of Information Science and Engineering, Northeastern University, Shenyang, ChinaState Key Laboratory of Synthetical Automation for Process Industries, College of Information Science and Engineering, Northeastern University, Shenyang, ChinaState Key Laboratory of Synthetical Automation for Process Industries, College of Information Science and Engineering, Northeastern University, Shenyang, ChinaCollege of Computer Science and Engineering, Northeastern University, Shenyang, ChinaA smooth operation of the fourth party logistics supply chain network requires the cooperation of multiple distribution centers and third party logistics. Any unexpected disruption caused by a certain distribution center may lead to serious consequences to the whole fourth party logistics supply chain. Therefore, we study the reliable fourth party logistics location-routing problem in the network design considering disruption risk of distribution centers. In addition, to minimize the total cost of the proposed problem, a scenario-based integer programming model is established to locate distribution centers, to select proper third party logistic providers, and to accomplish the vehicle routing from distribution centers to customers. Then, a two-level heuristic framework is proposed to handle this NP-hard problem through dividing the original problem into two sub-problems. One is the reliable fourth party logistics location assignment problem, and the other is the fourth party logistics vehicle routing problem. These two sub-problems can be independently solved and iteratively composed to get to the solution of the original problem. Furthermore, numerical experiments are designed, and the effectiveness of the heuristic framework is tested by comparing the quality of solutions and running time with those calculated by using CPLEX. Managerial insights are also provided based on the calculation results.https://ieeexplore.ieee.org/document/9452171/Location-routing problemreliablefourth party logisticstwo-level heuristic framework
spellingShingle Min Huang
Liwei Dong
Hanbin Kuang
Xingwei Wang
Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
IEEE Access
Location-routing problem
reliable
fourth party logistics
two-level heuristic framework
title Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
title_full Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
title_fullStr Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
title_full_unstemmed Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
title_short Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions
title_sort reliable fourth party logistics location routing problem under the risk of disruptions
topic Location-routing problem
reliable
fourth party logistics
two-level heuristic framework
url https://ieeexplore.ieee.org/document/9452171/
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AT xingweiwang reliablefourthpartylogisticslocationroutingproblemundertheriskofdisruptions