Capacitated Facility Location and Allocation with Uncertain Demand for Tourism Logistics: A Multiobjective Optimisation Approach

The paper develops a Multiobjective Optimisation (MOO) model for addressing Capacitated Facility Location Problem (CFLP) in tourism logistics, where two objectives are total of cost and customer service level. Nondominated Sorting Genetic Algorithm II (NSGA II) is used to solve the model. The illustrative case with imaginary data demonstrates that the model can figure out the location of the nodes of tourism logistics network and allocation of these sites, while the total of cost is reduced by up to 56.75% and customer service level is increased by an average of 105%. The distinction of this study compared to the current papers is that our model incorporates both items A and B to the subject matter of tourism logistics, where items A refer to tourism-related products and items B involve personal goods of tourists. The model established is limited with one assumption and one limitation which are associated with Vehicle Routing Problem (VRP) and the boundary of tourism logistics activity. Therefore, further research for the elimination of these limits is recommended.

[1]  Francisco Saldanha-da-Gama,et al.  Dynamic multi-commodity capacitated facility location: a mathematical modeling framework for strategic supply chain planning , 2006, Comput. Oper. Res..

[2]  Azlan Mohd Zain,et al.  Overview of NSGA-II for Optimizing Machining Process Parameters , 2011 .

[3]  Xiaofan Lai,et al.  A multi-objective optimization for green supply chain network design , 2011, Decis. Support Syst..

[4]  Kalyanmoy Deb,et al.  A fast and elitist multiobjective genetic algorithm: NSGA-II , 2002, IEEE Trans. Evol. Comput..

[5]  Fumitoshi Mizutani,et al.  The Post Office vs. Parcel Delivery Companies: Competition Effects on Costs and Productivity , 2003 .

[6]  Katarzyna Grzybowska,et al.  Sustainability in the Supply Chain: Analysing the Enablers , 2012 .

[7]  Zdenko Segetlija,et al.  Distribucijski sustav trgovinskoga poduzeća: distribucija, logistika, informatika , 2002 .

[8]  Haiyan Song,et al.  Tourism Supply Chain Management , 2012 .

[9]  Dušan Teodorović,et al.  A multi-objective approach to the parcel express service delivery problem , 2014 .

[10]  Omid Bozorg Haddad,et al.  Extraction of decision alternatives in construction management projects: Application and adaptation of NSGA-II and MOPSO , 2012, Expert Syst. Appl..

[11]  Yang Li,et al.  Discussion on Tourism Logistics Based on the Separation and Combination of Tourists and Items Theory , 2017 .

[12]  Chase C. Murray,et al.  The flying sidekick traveling salesman problem: Optimization of drone-assisted parcel delivery , 2015 .

[13]  Kalyanmoy Deb,et al.  A Fast Elitist Non-dominated Sorting Genetic Algorithm for Multi-objective Optimisation: NSGA-II , 2000, PPSN.

[14]  Yang Liu,et al.  A novel multi-objective programming model of relief distribution for sustainable disaster supply chain in large-scale natural disasters , 2018 .

[15]  Y. Narahari,et al.  Production, Manufacturing and Logistics Object oriented modeling and decision support for supply chains , 2004 .

[16]  Andreas Drexl,et al.  Facility location models for distribution system design , 2005, Eur. J. Oper. Res..

[17]  Pairach Piboonrungroj,et al.  Tourism logistics management: a case of cultural creative tourism in Thailand. , 2013 .

[18]  Ravi Shankar,et al.  Analysis of interactions among the variables of supply chain performance measurement system implementation , 2008, Bus. Process. Manag. J..

[19]  Edna Mrnjavac,et al.  Logistics and logistics processes in a tourism destination , 2007, Tourism and hospitality management.

[20]  Antoni Wibowo,et al.  A flexible three-level logistic network design considering cost and time criteria with a multi-objective evolutionary algorithm , 2013, J. Intell. Manuf..

[21]  Haldun Süral,et al.  Hubbing and routing in postal delivery systems , 2010, Ann. Oper. Res..

[22]  Ibrahim Ajagunna,et al.  Analysis of market conditions for logistics services and tourism: a Caribbean perspective , 2017 .

[23]  G. J. Ashworth,et al.  Heritage, identity and places: for tourists and host communities. , 2000 .

[24]  Philip Alford A Framework for Mapping and Evaluating Business Process Costs in the Tourism Industry Supply Chain , 2005, ENTER.

[25]  Jose Arturo Garza-Reyes,et al.  Resolving forward-reverse logistics multi-period model using evolutionary algorithms , 2017 .

[26]  Takashi Sekita,et al.  Value added distribution of parcels in Japan , 1990 .

[27]  Ioan Constantin Dima,et al.  Informational stocks and e-logistics management of a tourism company , 2014 .

[28]  Edna Mrnjavac,et al.  Integration of travel agencies with transport providers , 2014 .

[29]  R. Shankar,et al.  IT enablement of supply chains: modeling the enablers , 2004 .

[30]  Tea Baldigara,et al.  Logistics processes in a tourism destination , 2007, Tourism and hospitality management.

[31]  Chin-Chia Jane,et al.  Performance evaluation of logistics systems under cost and reliability considerations , 2011 .

[32]  Pin-Fenn Chou,et al.  AN EVALUATION OF SERVICE QUALITY, TRUST, AND CUSTOMER LOYALTY IN HOME-DELIVERY SERVICES , 2014 .

[33]  J. Pach,et al.  Wiley‐Interscience Series in Discrete Mathematics and Optimization , 2011 .

[34]  Wuttigrai Ngamsirijit Demand responsive transportation for creative tourism logistics planning , 2015 .

[35]  Xu Peng,et al.  A multi-objective optimization model for sustainable logistics facility location , 2013 .

[36]  Shaligram Pokharel,et al.  Optimization models in emergency logistics: A literature review , 2012 .

[37]  Richard Patrick Bennett,et al.  Tourism and logistics in an age of unprecedented crime , 2017 .

[38]  Luis C. Dias,et al.  Multi-objective optimization for building retrofit strategies: A model and an application , 2012 .

[39]  Wuttigrai Ngamsirijit Using Capacity Flexibility Model for responsive tourism logistics: The case of Pattaya city , 2013, Proceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics.

[40]  Edna Mrnjavac LOGISTICS OF TOURIST DESTINATION , 2002 .

[41]  Ibrahim Ajagunna,et al.  Tourism development and logistics in the Caribbean: will there be a symbiotic relationship? , 2017 .

[42]  Mohamad Saeed Jabalameli,et al.  A multi-objective robust stochastic programming model for disaster relief logistics under uncertainty , 2011, OR Spectrum.

[43]  Ziyou Gao,et al.  An efficient algorithm for evaluating logistics network reliability subject to distribution cost , 2014 .

[44]  Zdzisław KORDEL LOGISTICS IN TOURISM AND RECREATION , 2009 .

[45]  Reza Tavakkoli-Moghaddam,et al.  A new multi-objective stochastic model for a forward/reverse logistic network design with responsiveness and quality level , 2013 .

[46]  A. Shamsai,et al.  Multi-objective Optimization , 2017, Encyclopedia of Machine Learning and Data Mining.

[47]  Christine L. Mumford,et al.  A hybrid multi-objective approach to capacitated facility location with flexible store allocation for green logistics modeling , 2014 .

[48]  Dimitrios Buhalis,et al.  The perception of small and medium sized tourism accommodation providers on the impacts of the tour operators’ power in Eastern Mediterranean , 2004 .

[49]  Veronica Popovici,et al.  Logistics and Supply Chain Management in Tourism , 2008 .

[50]  Saman Hassanzadeh Amin,et al.  A multi-objective facility location model for closed-loop supply chain network under uncertain demand and return , 2013 .

[51]  Giovanni Pino,et al.  Private Label in the Tourism Industry: The Effects of Economic Crises , 2016 .

[52]  S. G. Deshmukh,et al.  Interpretive structural modeling (ISM) of IT-enablers for Indian manufacturing SMEs , 2008, Inf. Manag. Comput. Secur..

[53]  Michel Gendreau,et al.  Vehicle Routing Problem with Time Windows, Part I: Route Construction and Local Search Algorithms , 2005, Transp. Sci..

[54]  Ravi Shankar,et al.  An ISM approach for modelling the enablers of flexible manufacturing system: the case for India , 2008 .

[55]  S. Maguire,et al.  SMEs e-strategies within the logistics and tourism industries , 2007 .

[56]  Wout Dullaert,et al.  A multi-objective robust optimization model for logistics planning in the earthquake response phase , 2013 .

[57]  Kalyanmoy Deb,et al.  Controlled Elitist Non-dominated Sorting Genetic Algorithms for Better Convergence , 2001, EMO.

[58]  Kirkland Robert Anderson Tourism and global logistics hub development in the Caribbean: Will there be a symbiotic relationship? , 2017 .

[59]  Jo-Hui Lin,et al.  The Relational Behavior Between Wholesaler and Retailer Travel Agencies: Evidence From Taiwan , 2006 .

[60]  R. Shankar,et al.  Productivity improvement of a computer hardware supply chain , 2005 .