A New Randomized Procedure to Solve the Location Routing Problem

The Location Routing Problem (LRP) is one of the most important challenging problems in supply chain design since it includes all decision levels in operations management. Due to its complexity, heuristics approaches seem to be the right choice to solve it. In this paper we introduce a simple but powerful approach based on biased randomization techniques to tackle the capacitated version of the LRP. Preliminary tests show that near-optimal or near-BKS can be found in a very short time.

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