A general solution approach for the location routing problem

Conventional solution methods for logistics optimization problems often have to be adapted when objectives or restrictions of organizations in logistics environments are changing. In this paper, a new, generic solution approach called optimization network (ON) is developed and applied to a logistics optimization problem, the Location Routing Problem (LRP). With this approach, required flexibility in terms of fast changing data within the advancement of industry 4.0 is addressed. In an ON, existing solution methods are applied to the basic problems of the LRP. A meta solver optimizes the overall result of the network with black box optimization. Based on this, an orchestrator is responsible for the introduction of new optimization runs. The developed approach guarantees that changing external influences only involve the adaption of affected optimization nodes within the ON and not of the whole solution approach. Results are compared with an already existing generic solver and show the potential of the new solution method.