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Enhancing Urban Logistics Efficiency: A Mixed Heuristic Approach for Solving the Two-Echelon Location-Routing Problem with Recommended Satellites

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Abstract

The Two-Echelon Location-Routing Problem with Recommended Satellites (2E-LRPRS) presents a critical optimization challenge in last-mile delivery systems. We propose a hybrid heuristic framework combining greedy satellite selection with Nearest Neighbor routing for second-echelon distribution. This approach minimizes total transportation costs while achieving significant computational efficiency. Experimental results demonstrate a 4.29% average improvement in solution quality for small-to-midsized instances compared to existing methods. The greedy component identifies high-impact satellite locations, while TSP-based routing optimizes paths between satellites and customers. Our model balances solution quality with computational requirements, making it particularly suitable for dense urban logistics. Operational flexibility is enhanced through support for ad hoc driver participation and decentralized vehicle deployment, ensuring adaptability in dynamic urban environments.

Original languageEnglish
Pages (from-to)601-610
Number of pages10
JournalProceedings of International Conference on Computers and Industrial Engineering, CIE
Volume2025-October
StatePublished - 2025
Event52nd International Conference on Computers and Industrial Engineering, CIE 2025 - Lyon, France
Duration: 29 Oct 202531 Oct 2025

Bibliographical note

Publisher Copyright:
© 2025 Computers and Industrial Engineering. All rights reserved.

Keywords

  • Heuristic
  • Metaheuristics
  • Supply chains and networks
  • recommended satellites

ASJC Scopus subject areas

  • Control and Systems Engineering
  • General Computer Science
  • Safety, Risk, Reliability and Quality
  • Industrial and Manufacturing Engineering
  • Electrical and Electronic Engineering

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