Reliable Fourth Party Logistics Location-Routing Problem Under the Risk of Disruptions

A smooth operation of the fourth party logistics supply chain network requires cooperation multiple distribution centers and third logistics. Any unexpected disruption caused by a certain center may lead to serious consequences whole chain. Therefore, we study reliable location-routing problem in design considering risk centers. In addition, minimize total cost proposed problem, scenario-based integer programming model is established locate centers, select proper logistic providers, accomplish vehicle routing from customers. Then, two-level heuristic framework handle this NP-hard through dividing original into two sub-problems. One location assignment other problem. These sub-problems can be independently solved iteratively composed get solution Furthermore, numerical experiments are designed, effectiveness tested comparing quality solutions running time with those calculated using CPLEX. Managerial insights also provided based on calculation results.