SUNConferences, Computers and Industrial Engineering 42

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A Robust Mathematical Model for Route Planning of a Third-Party Logistics Provider
Javid Jouzdani, Mohammad Fathian

Last modified: 2012-06-20

Abstract


Third-party logistics (3PL) is gaining ground as companies try to focus on their core competencies and outsource their logistics activities. However, the environment is becoming more and more competitive for 3PL providers as new rivals enter the market. Routing, as one of the main activities of 3PL, has a major share in transportation costs and apparently should be planned cautiously. In addition, route planning in real-world situations is subject to uncertainties which may greatly affect the performance of a 3PL provider if neglected. Having these concepts in mind, a robust mathematical model for route planning problem in a 3PL company is proposed. The problem is modeled as a robust multi-depot multiple travelling salesman problem (MmTSP) and comprehensive numerical results are provided to show that the proposed model is promising.

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