Evaluation of Cost Structure and Impact of Parameters in Location-routing Problem with Time Windows

This study presents the evaluation and application of the location-routing problem with time windows (LRPTW) in the distribution network. The ordinary location-routing problem is considered one of the integrated logistics system tools extended from the original facility location problem. By adding the time windows into the problem, it provides the room to improve the service quality and customer satisfaction. To understand the impact of the main parameters, nine scenarios of the Osaka distribution network from freight carrier were tested with different depot location, depot size, and vehicle size. It was observed that the large size depot, located in Minato-ku, serving by large size vehicle results in the lowest overall cost. The characteristics of depot, vehicle, and transport information were also discussed in detail.