Multi-products Location-Routing problem with Pickup and Delivery: Two-Echelon model

This paper presents a new extension of Location-Routing Problem namely LRP with Multi-Products, Pickup and Delivery (LRP- MPPD). A two-echelon distribution strategy is considered in this study. The first echelon deals with simultaneously selecting of processing centers from a set of potential sites and tours construction from the main depot to the selected processing centers. The second echelon aims at assigning customers to the selected processing centers and defining tours visiting customers, through one or several processing centers. We propose a mixed integer linear programming formulation and a heuristic approach. Computational experiments are conducted to validate our approach.