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Josue Velazquez WP 451
Josue Velazquez WP 451
1
Technische Universiteit Eindhoven
NL-5600 MB Eindhoven
Netherlands
2
MIT Center for Transportation & Logistics
3
Instituto Tecnológico y de Estudios Superiores de Monterrey, Campus Estado de México
1
Transportation Cost and CO2 Emissions in
Location Decision Models
An increasing number of companies are making their supply chains more sustainable. Because
transportation accounts for a large share of global CO2 emissions, finding logistics alternatives that reduce
carbon emissions while keeping costs low is a priority. In this article, we study the trade-off between cost
and CO2 emissions by using a multiobjective approach for the facility location problem. We propose a
model with new cost and CO2 structures for the p-Median problem to determine a sustainable location. To
solve this problem, we develop the multiobjective combinatorial optimization cross-entropy method, to
address the difficulties of combinatorial models. We test the algorithm against two p-Median problems
from prior literature and show that it can approximate the Pareto frontier efficiently. We also conduct an
experimental study for a consumer packaged goods company in Mexico City to provide insights on the
structure of the Pareto frontier for a practical sustainable facility location case. The study shows that by
selectively changing a subset of locations, companies may achieve a substantial reduction in carbon
emissions under similar costs.
1. Introduction
Regardless of whether companies’ decision makers believe in green and sustainable practices, a market
shift is occurring, driving firms to measure and disclose their carbon emissions and implement solutions
to reduce those emissions (Hoffman and Woody, 2008). For example, the number of companies around
the world reporting their emissions to the Carbon Disclosure Project (2011), a not-for-profit foundation,
has doubled from 2007 to 2010, and approximately 1,000 of these companies have publicly committed to
a carbon reduction target. Transportation is one of the main contributors of carbon dioxide (CO2)
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(Intergovernmental Panel on Climate Change, 2007), and predictions indicate increases in the next 20
years (European Commission, 2011); thus, more efficient transport operations would substantially reduce
carbon emissions.
A relevant logistics problem that determines the configuration of a company’s delivery of goods is the
facility location problem. The location of distribution centers is critical to the efficient and effective
operation of a supply chain; poorly placed plants can result in excessive costs and low service level no
matter how well tactical decisions (e.g., vehicle routing, inventory management) are optimized (Daskin et
al., 2005). In addition, this configuration can increase CO2 emissions, in that the main drivers of
transportation carbon emissions are distance, truck load (Greenhouse Gas Protocol Standard, 2011) and
the number of trips required to deliver demand to each customer.
A common facility location model that has multiple real-world applications is the p-Median problem
(ReVelle et al., 2008). The p-Median problem considers p facilities that must be located in a network,
such that the demand in each node must be satisfied while the total weighted demand-distance is
minimized (Hakimi, 1964). Because of the strategic nature of facility location problems, the cost structure
of the p-Median does not take into account capacity or cost of the truck fleet, and it assumes a constant
cost per distance per unit (ReVelle et al, 2008), linear to the distance and demand. However, in reality
these two factors are not linearly related; for example, the amount of items affects the transport cost (and
carbon emissions) when it implies an increase in the number of trucks or trips.
Previous operations research has addressed aggregations. Jalil et al. (2011) study cost aggregation for
real-life spare parts planning, and they find that errors can be significant. Velázquez-Martínez et al.’s
(2013) study addresses the effects of using different aggregation levels to measure transport carbon
emissions in the dynamic lot-sizing model, and they show that errors associated with aggregation tend to
be substantial and systematic. These findings suggest that increasing the level of detail in the p-Median
problem is necessary.
Because decision makers are likely interested in evaluating alternatives to increase carbon efficiency
while keeping low transport costs, we propose a multiobjective approach to analyze the trade-off between
cost and carbon emissions expressions for the p-Median problem. Although literature on multiobjective
facility location problems with environmental concerns has increased in the first decade of the twenty-
first century (e.g., Blanquero and Carrizosa [2002] study a semi-obnoxious location problem with cost
and negative effect; Medaglia et al. [2009] investigate a hospital waste management system; Fonseca et
al. [2009] address stochastic reverse logistics; Du and Evans [2008] study reverse logistics network), to
our knowledge, no studies include sustainability in their location models, because it is difficult to define a
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structure that measures this attribute (Farahani et al., 2010). In this study, we propose an expression that
takes into consideration CO2 emissions in the p-Median problem.
The p-Median problem with a single objective is classified as NP-hard (Kariv and Hakimi, 1979);
therefore, defining the Pareto frontier for its multiobjective version is not an easy task. Traditional
optimization methods such as gradient- and simplex-based methods are difficult to extend to
multiobjective optimization (Fonseca and Fleming, 1995); however, the use of metaheuristics allows
researchers to manage these problems effectively. These techniques enable researchers to find several
solutions of the set in a single run instead of performing a series of separate runs (Ajith et al., 2005).
Bekker and Aldrich (2011) apply a new metaheuristic to solve multiobjective optimization problems
based on the cross-entropy (CE) method (De Boer et al., 2005), a simulation-based metaheuristic used to
solve single-objective optimization problems. Bekker and Aldrich (2011) adapt the CE method to solve
multiobjective optimization problems and test it against benchmark problems from the literature. They
show that the CE method applied to multiobjective optimization obtains satisfactory results. Although
their test results seem promising for applying the CE method in multiobjective problems, their study does
not address the use of the algorithm on multiobjective combinatorial optimization (MOCO) problems,
which corresponds to the structure of the p-Median model.
In the current research, we study the trade-off between cost and CO2 by using a multiobjective approach
to the p-Median problem. We name this new model the sustainable facility location (SFL) problem. Our
model captures a higher level of detail in the cost and CO2 formulations by taking into account truck
accessibility constraints per demand node and finer-grained expressions for both objective functions. To
approximate the Pareto frontier of the SFL, we develop an adaptation of the CE method applied to
multiobjective optimization problems, called the MOCO CE method (hereinafter, MOCO CEM). We test
our algorithm against problems from prior literature and demonstrate that the MOCO CEM is capable of
approximating the Pareto frontier for the SFL problem efficiently. Furthermore, we conduct an
experimental study of the MOCO CEM by solving the SFL for a consumer packaged goods (CPG)
company that operates in the Mexico City metropolitan area. The experiments provide managerial
insights on the structure of the Pareto frontier for an actual company in a large urban area and show that it
is possible to find location alternatives, such that for small increases in cost, firms can obtain large CO2
emission reductions.
The remainder of this article is organized as follows: Section 2 presents the mathematical formulation of
the sustainable facility location model. Section 3 describes the MOCO CEM. Section 4 presents a case
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study in which we apply the MOCO CEM to an actual CPG company. In Section 5, we present our
conclusions.
To formulate the carbon emissions objective function in our model, we use Network for Transport and
Environment’s methodology. For the estimation of carbon emissions, this methodology requires a high
level of detailed parameters: fuel consumption, distance traveled and weight per shipment (Network for
Transport and Environment Road, 2008). Fuel consumption is a function of the type of vehicle, the load
factor and the type of road. The methodology uses the European Assessment and Reliability of Transport
Emission Models and Inventory Systems database, which includes a detailed emissions model for all
transport modes to provide consistent emission estimates at the national, international and regional levels
(Transport Research Laboratory, 2010).
We therefore formulate our model as follows. Let 𝐼 be a set of demand nodes and 𝐽 be a set of candidate
locations. We define the following parameters:
ℎ𝑖 = Demand at node 𝑖 ∈ 𝐼
𝑑𝑖𝑗 = Distance between candidate facility site 𝑗 ∈ 𝐽 and
customer location 𝑖 ∈ 𝐼
𝐴𝑖𝑗 = Fixed cost per trip between candidate facility site
𝑗∈𝐽 and customer location 𝑖∈𝐼
𝑣𝑖𝑗 = Cost per distance traveled between candidate
facility site 𝑗∈𝐽 and customer location 𝑖∈𝐼
𝑊𝑖 = Truck capacity per trip restricted to customer
location 𝑖∈𝐼
ℎ𝑖 𝑌𝑖𝑗 = Number of trips per period required to serve the
𝑛𝑖𝑗 =
𝑊𝑖 customer location 𝑖∈𝐼 from facility site 𝑗∈𝐽
𝑘 = Constant emission factor (2,621 grams of CO2/liter
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of fuel)
𝑓𝑖𝑒 = Fuel consumption of the empty vehicle used to
serve at customer location 𝑖∈𝐼 (liters/km), and
𝑓
𝑓𝑖 = Fuel consumption of the fully loaded vehicle used
to serve at customer location 𝑖∈𝐼 (liters/km)
𝑀𝑖𝑛 → 𝑂𝐹2 = 𝑘 �� � 𝑑𝑖𝑗 𝑓𝑖𝑒 �𝑛𝑖𝑗 � + � � 𝑑𝑖𝑗 𝑛𝑖𝑗 �𝑓𝑖𝑓 − 𝑓𝑖𝑒 ��𝑛𝑖𝑗 ��
𝑗∈𝐽 𝑖∈𝐼 𝑗∈𝐽 𝑖∈𝐼
subject to
The first part of OF1 corresponds to the fixed cost per trip. It includes labor and costs related to the use of
the truck (e.g., depreciation, insurance). In turn, 𝑛𝑖𝑗 is the total number of trips required to deliver the
total demand from location j to demand node i taking into account the truck capacity Wi. Note that we do
not restrict 𝑛𝑖𝑗 to be an integer because of the strategic nature of the model, fixed costs tend to be
allocated across multiple demand nodes and trips. The second part of OF1 corresponds to the variable
cost per distance traveled from candidate facility site 𝑗 ∈ 𝐽 to customer location 𝑖 ∈ 𝐼. We apply a ceiling
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function to estimate the number of times distance 𝑑𝑖𝑗 is traveled. The first part of OF2 corresponds to the
carbon emissions due to the number of trips required, and the second part corresponds to the carbon
emissions due to the units to be transported. Constraint 1 states that each demand node is covered.
Constraint 2 establishes that p facilities are located. Constraint 3 designates that the facility is opened
when a demand node is assigned. Constraint 4 encompasses the integrality constraints, and constraint 5
encompasses the non-negative constraints.
By reducing the expressions, and because the single sourcing condition holds for both OF1 and OF2, we
formulate the multiobjective SFL problem as follows:
ℎ𝑖 ℎ𝑖
𝑀𝑖𝑛 → 𝑂𝐹1 = � � � 𝐴𝑖𝑗 + 𝑣𝑖𝑗 𝑑𝑖𝑗 � �� 𝑌𝑖𝑗
𝑊𝑖 𝑊𝑖
𝑗∈𝐽 𝑖∈𝐼
ℎ𝑖 𝑓 ℎ𝑖
𝑀𝑖𝑛 → 𝑂𝐹2 = � � 𝑑𝑖𝑗 � � �𝑓𝑖𝑒 + �𝑓𝑖 − 𝑓𝑖𝑒 � � 𝑌𝑖𝑗
𝑊𝑖 𝑊𝑖
𝑗∈𝐽 𝑖∈𝐼
Note that the objective functions differ from each other: OF1 has fixed and variable costs, but only the
variable part depends on the distance traveled, whereas the entire OF2 expression depends on the distance
traveled. This relationship suggests that for a specific instance, if the highest fixed costs are assigned to
edges with the shortest distance (or the lowest fixed costs are assigned to edges with the largest distance),
SFL may provide multiple solutions, and thus, the Pareto frontier would contain a larger number of
points.
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When a MOO problem involves discrete space, it is considered a MOCO problem. Similar to MOO,
MOCO has several objective functions, but the variables are integers or binary numbers. As in
combinatorial optimization with a single objective, MOCO has a finite and discrete set of feasible
solutions. A general formulation of the MOCO problem is as follows (Ehrgott, 2005):
𝑚𝑖𝑛�𝑓𝑗 (𝒙): 𝒙 ∈ 𝑋; 𝑗 = 1, … , 𝑚�
𝑋 = {𝒙: 𝐴𝒙 = 𝒃, 𝒙 ≥ 0 𝑖𝑛𝑡𝑒𝑔𝑒𝑟; 𝑖 = 1, … , 𝑛}
where 𝑓𝑗 is the 𝑗 𝑡ℎ objective function and x is the vector of decision variables. The matrix A and vector b
define the set of linear constraints.
In the following subsections, we elaborate on concepts from Deb (2001), Ehrgott (2005) and Coello
(2009) to define relevant terms.
Definition 1. Dominance
A solution x is said to dominate solution y if both the following conditions hold for a minimization
problem:
1. The solution x is not worse than y in all objectives; that is, 𝑓𝑗 (𝒙) ≤ 𝑓𝑗 (𝒚) for all 𝑗 = 1, … , 𝐽
2. The solution x is strictly better than y in at least one objective; that is, 𝑓𝑗′ (𝒙) < 𝑓𝑗′ (𝒚) for at least
one 𝑗′ ∈ {1, … , 𝑀}
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Thus, the goal in MOO and MOCO is to find members of the Pareto-optimal set. Some solution
approaches obtain all elements of the Pareto set, while other techniques aid in the approximation of this
set. Such an approximation could result in a subset of the exact Pareto set or a set of points within a
specified distance of the Pareto set.
For MOO in continuous problems, a classic approach to obtain the Pareto set involves using the weighted
sum scalarization method, which corresponds to the set of solutions that can be obtained by solving
𝑚𝑖𝑛�∑𝑚 𝑚
𝑗=1 𝜆𝑗 𝑓𝑗 (𝒙) : 𝒙 ∈ 𝑋�, where 0 ≤ 𝜆𝑗 ≤ 1 and ∑𝑗=1 𝜆𝑗 = 1. However, this approach does not work
for MOCO problems because of their discrete structure (Ehrgott and Gandibleux, 2000). The solutions for
the MOCO problems that can be obtained by this approach are called supported solutions. Typically,
MOCO problems have more efficient solutions that are not optimal for any weighted sum of the
objectives. These solutions are called nonsupported solutions, and their numbers increase exponentially
with the problem size (for the assignment problem, see Hansen 1980; for the traveling salesperson
problem, see Sergienko and Perepilitsa 1991). Ehrgott (2000) shows that the general MOCO problem is
NP-complete, and thus, it may be computationally prohibitive to use an exact method to determine all
efficient solutions. Therefore, we conclude that approximate methods are appropriate.
In the next section we review the main approximate algorithms for combinatorial multiobjective
problems.
Because most MOCO problems are NP-complete, literature mostly focuses on approximate (heuristic)
algorithms that address reasonably sized problems. These algorithms generate an approximated Pareto set
(or a subset of it) with solutions that either belong to the optimal Pareto set or are close to it.
Evolutionary algorithms are metaheuristic procedures that have become increasingly popular in recent
decades (Coello, 2009). Their ability to handle complex problems, involving features such as
discontinuities, multimodality and disjoint feasible spaces, have made them effective techniques to seek
approximately Pareto-optimal solutions for MOO problems (Fonseca and Fleming, 1995; Jaszkiewicz,
2002; Köksalan, 2008; Zitzler et al., 2000). Schaffer (1985) presents the vector evaluated genetic
algorithm (VEGA). Horn et al. (1994) propose the niched Pareto genetic algorithm (NPGA). Zitzler and
Thiele (1998) propose the strength Pareto evolutionary algorithm (SPEA). Deb et al. (2000) suggest an
elitist nondominated sorting genetic algorithm (NSGA-II) that uses an elite preservation strategy together
with an explicit diversity-preserving mechanism.
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In the current study, we propose using the CE method (Rubinstein & Kroese, 2004) for MOCO problems
by adapting the MOO CE method (hereinafter, MOO CEM) that Bekker and Aldrich (2011) present. The
MOO CEM was tested against benchmarking problems from Coello et al. (2007) and the results were
promising by approximating all the problems to the true Pareto optimal set (Bekker and Aldrich, 2011),
with fewer objective function evaluations than in other experiments reported for the algorithms VEGA,
NPGA and SPEA (Zitzler et al., 2000).
The MOO CEM is a metaheuristic to solve MOO problems using the CE method (De Boer et al., 2005;
Rubinstein and Kroese, 2004). The CE method was motivated by an adaptive algorithm for estimating
probabilities of rare events in complex stochastic networks (Rubinstein, 1997). This algorithm can solve
difficult single-objective combinatorial optimization problems. It works by translating the deterministic
optimization problem into a related stochastic optimization problem and then using rare event simulation
techniques similar to Rubinstein (1997). Several recent applications demonstrate the power of the CE
method as a practical tool for solving NP-hard problems: buffer allocation (Alon et al., 2005), control and
navigation (Helvik and Wittner, 2001), DNA sequence alignment (Keith and Kroese, 2002), vehicle
routing (Chepuri and Homem-de-Mello, 2005), project management (Cohen et al., 2005), heavy-tail
distributions (Rubinstein and Kroese, 2004), network reliability (Hui et al., 2005), maximal cut and
bipartition problems (Rubinstein, 2002) and facility location problems (Caserta and Quiñonez Rico,
2009). De Boer et al. (2005) provide a tutorial on the CE method.
The foundation of CE method for optimization is in Importance Sampling and the Kullback–Leibler
distance (Rubinstein and Kroese, 2004). In the following paragraphs, we present a brief description of the
CE method based on some definitions from Rubinstein and Kroese (2004) and include the algorithm to
solve single-objective combinatorial optimization problems (for a more complete review, see De Boer et
al. 2005).
Let 𝚾 = (𝑋1 , … , 𝑋𝑛 ) be a random vector assuming values from some space x, and let f be some real
function on x. To determine the probability that 𝑓 (𝚾) is greater than or equal to a real number 𝛾 under a
family of probability density functions ℎ(∙; 𝑢) on x, we use 𝑙 = ℙ𝑢 (𝑓(𝚾) ≥ 𝛾) = 𝔼𝑢 𝐼(𝑓(𝚾)≥𝛾). Then
𝑓 (𝚾 ≥ γ) is called a rare event if l is very small, and it can be efficiently estimated using importance
sampling. We thus generate a random sample 𝚾1 , … , 𝚾𝑁 from a different density g on x and estimate l
1 ℎ(𝚾𝑖 ;𝐮)
using the following likelihood estimator (Rubinstein and Kroese, 2004): 𝑙̂ = 𝑁 ∑𝑁
𝑖=1 𝐼{𝑓(𝚾𝑖 )≥𝛾} 𝑔(𝚾 ) .
𝑖
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𝐼�𝑓�𝚾 �≥𝛾� ℎ(𝚾𝑖 ;𝐮)
Thus, 𝑙 = 𝑖
𝑔 ∗(𝚾𝑖)
. In turn, 𝑔∗ can be approximated within the family of densities {ℎ(∙; 𝐯)} with
reference parameter v such that the distance between 𝑔∗ and ℎ(∙; 𝐯) is minimal. A measure of this
magnitude is called the Kullback–Leibler distance, or the CE between g and h.
4. If the stopping criterion (e.g., stop when 𝛾�𝑡 does not change for several subsequent iterations, stop
� 𝑡 has converged to a binary vector) is met, stop; otherwise set 𝑡 ∶= 𝑡 + 1 and
when vector 𝒑
reiterate from Step 2.
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Although Bekker and Aldrich (2011) demonstrate that the MOO CEM is suitable for solving MOO
problems from the literature, their study does not address issues in solving combinatorial optimization
problems. First, the solution representation is different in terms of the decision variables domain. The
MOO CEM involves continuous variables, which make the application of the truncated normal
distribution effective in terms of updating the parameters to generate new, “better” samples. However, the
decision variables in MOCO problems are either integer or binary; therefore, this approach is not useful.
In addition, the solutions that the MOO CEM obtains are not limited to constraints (just the boundaries of
the decision variables); therefore, an extension to include them in the procedure is not trivial and would
require changing the histogram concept, which is the basis of the MOO CEM.
To address these two issues, we define a new updating rule to provide feasible and better solutions in each
iteration. We propose a new metaheuristic algorithm based on the MOO CEM to solve the SFL problem:
the MOCO CEM.
The first step to define the MOCO CEM is how to represent a solution. Caserta and Quiñonez Rico
(2009) present a CE-based algorithm for solving facility location problems for a single objective function.
In their study, a binary representation was used to model the number of located facilities among the
candidates. Using this approach we propose the following vector representation for a solution: Consider
SFL problem. Let n and m be the number of demand nodes and candidate locations respectively. Table 1
shows the solution representation.
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Because the assignment subproblem is solvable in polynomial time, it can be solved optimally during the
algorithm procedure. In other words, for a feasible solution 𝐗 𝑘 , we can calculate the optimal value
𝑆(𝚾𝑘 ) = �𝑆(𝐘 𝑎 𝑘 ), 𝑆�𝐘𝑏 𝑘 ��, based on the optimal assignment subproblem 𝐘 𝑎 𝑘 and 𝐘𝑏 𝑘 of SFL. This
representation allows the algorithm to deal only with 𝐗 𝑘 vectors. The MOCO CEM differs from previous
applications of the CE method in several ways:
1. To generate random samples, we propose the Bernoulli distribution as in Caserta and Quiñonez
Rico (2009). Because the decision variables 𝑋𝑗 for all 1 ≤ 𝑗 ≤ 𝑚 are binary, the truncated normal
distribution that Bekker and Aldrich (2011) suggest is no longer adequate for the problem.
2. To generate more feasible solutions 𝐗 𝑘 , we propose using the success probability vector with
�0 = � 𝑝 , … , 𝑝 �, such that p is the number of facilities to be located and m is the number of
𝐏 𝑚 𝑚
candidate locations, which enables us to obtain more feasible solutions using smaller population
sizes. Then, to test feasibility, we evaluate each solution for the decision variables with the
expression ∑𝑚
𝑖=1 𝑋𝑖 = 𝑚.
Next we present a narrative description of the MOCO CEM. We create a vector E that will contain the
efficient solutions, and initialize the iteration counter 𝑡 = 1 and the population size N. To generate sample
�𝑡−1 = � 𝑝 , … , 𝑝 � with m elements, as success probability values for
vectors 𝐗𝑗 for 𝑗 = 1, … , 𝑁, we use 𝐏
𝑚 𝑚
the Bernoulli distribution. Each 𝐗𝑗 represents a feasible location of SFL. Then we calculate 𝐘 𝑎𝑗 and 𝐘𝑏𝑗
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and the values of the fitness functions 𝑆�𝐘 𝑎𝑗 � and 𝑆�𝐘𝑏𝑗 � for the cost and CO2 emissions functions,
respectively (see Table 2).
Table 2. Representation of the random sample 𝚾1 , … , 𝚾𝑁
Facility location Cost assignment CO2 assignment 𝑆�𝚾𝑗 �
𝐗1 𝐘𝑎 1 𝐘𝑏 1 𝑆(𝐘 𝑎 1 ) 𝑆�𝐘𝑏 1 �
⋮ ⋮ ⋮ ⋮ ⋮
𝐗𝑁 𝐘𝑎 𝑁 𝐘𝑏 𝑁 𝑆(𝐘 𝑎 𝑁 ) 𝑆�𝐘𝑏 𝑁 �
We rank the solution using the Pareto-ranking algorithm (Goldberg, 1989), with a threshold (th) value of
2, as in Bekker and Aldrich (2011) (i.e., we keep all solutions dominated by no more than two solutions in
∑𝑟𝑗=1 𝑰 𝑰
�𝑆�𝚾 𝑗 � ∈ 𝐸� �𝑋𝑗 =1�
�𝑡 = �𝑝̂ 𝑡,1 , … , 𝑝̂ 𝑡,𝑚 � by using 𝑝̂ 𝑡,𝑗 =
E and delete the rest). Next, we update vector 𝐩 |𝐸|
,
�𝑡 contains the new success probability values for the Bernoulli distribution. We smooth 𝐩
where 𝐩 �𝑡 using
𝑝̂ 𝑡,𝑗 = 𝛼𝑝�𝑡,𝑗 + (1 − 𝛼 )𝑝̂ 𝑡−1,𝑗 , and we generate another random sample of vectors 𝐗𝑗 . After a given
number of iterations, we rank E again with 𝑡ℎ = 1. Finally, using the most updated version of E, we rank
the vector with 𝑡ℎ = 0 to obtain the final version of E, which contains the efficient solutions.
The pseudo-code for the MOCO CEM algorithm to solve the SFL problem is as follows:
�𝑡−1 .
3. Draw a sample 𝚾1 , … , 𝚾𝑁 of Bernoulli vectors with success probability vector 𝐩
4. Calculate the performances 𝑆�𝚾𝑗 �, 1 ≤ 𝑗 ≤ 𝑁 by solving the assignment problem of SFL.
5. Rank the performance values using the Pareto-ranking algorithm (Goldberg, 1989), with a relaxed
𝑡ℎ = 2 to obtain an updated elite vector E.
�𝑡 = �𝑝̂ 𝑡,1 , … , 𝑝̂ 𝑡,𝑚 � with the following equation:
6. Use the same sample to calculate 𝐩
∑𝑟𝑗=1 𝑰�𝑆�𝚾𝑗 � ∈ 𝐸� 𝑰�𝑋𝑗 =1�
𝑝̂ 𝑡,𝑗 =
|𝐸 |
�𝑡 using 𝑝̂ 𝑡,𝑗 = 𝛼𝑝�𝑡,𝑗 + (1 − 𝛼)𝑝̂ 𝑡−1,𝑗 .
7. Smooth the vectors 𝐩
8. If all 𝜎𝑡,𝑗 > 𝜖 or less than the allowable number of evaluations has been done, increment t and
reiterate from Step 3.
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10. Increment k.
11. If k is less than the allowable number of loops, return to Step 2.
12. Rank E using the Pareto-ranking algorithm (Goldberg, 1989) with 𝑡ℎ = 0 to obtain the final
vector of efficient solutions.
3.4. Validation
This section presents an analysis of the application of the MOCO CEM in solving p-Median problems
from the literature. Our purpose is to show that the algorithm can solve the problems efficiently by
approximating to the Pareto frontier; thus, we do not provide a full experimental analysis of its
performance against other algorithms.
To validate the MOCO CEM applied in p-Median problems, we solve two test instances from Beasley
(1985) (see Table 3). Because there are no extant test instances for multiobjective p-Median problems
with known Pareto frontiers, we selected the first two instances simply to exemplify the application of the
algorithm. The instances were designed to test heuristics for single objective problems; therefore, they
include only the transport cost 𝑐𝑖𝑗 and not the carbon emissions 𝑐′𝑖𝑗 . We calculate the carbon emissions as
follows: 𝑐′𝑖𝑗 = �𝑐𝑖𝑗 − 𝑚𝑎𝑥�𝑐𝑖𝑗 |𝑗 ∈ 𝐽, 𝑖 ∈ 𝐼��. This operation does not change the complexity of the
problem; we calculate it with the purpose of defining a different carbon emissions objective function so
that the Pareto frontier can contain more points.
Table 3. Instances from Beasley (1985)
Instances nodes edges P possible solutions
pmed1 100 200 5 7.53 x 107
pmed2 100 200 10 1.73 x 1013
To measure the performance of our algorithm, we calculate the supported solutions by using the weighted
sum scalarization method (see Section 3.1) to identify some points of the real Pareto frontier. Note that
this method can be used for pmed1 and pmed2 because neither instance is as complex as the rest of the
instances Beasley (1985) provides. Therefore, we can compare solutions in terms of their quality. We use
∆𝜆 = 0.01 such that 𝜆𝑗 = 𝜆𝑗−1 + ∆𝜆 for 𝑗 = 1, … ,100 and 𝜆0 = 0. We obtain three supported solutions in
each instance. Using the efficient solutions the MOCO CEM obtains, we select the following metrics
from Knowles and Corne (2002) to assess the efficient solutions against the supported solutions: error
ratio (ER), general distance (GD), the maximum Pareto front error (MPFE), the overall nondominated
vector generation (ONVG) and the overall nondominated vector generation ratio (ONVGR). We
15
programmed the MOCO CEM in Mathematica 9 and performed the tests on an EliteBook laptop with two
Intel Core i7 CPUs and 8 GB memory. We used 𝛼 = 0.7 and a preset probability of .1 as Bekker and
Aldrich (2011) suggest. Table 4 presents the results.
Table 4. Test results for the MOCO CEM in solving pmed1 and pmed2
Instance N ER GD MFE ONVG ONVGR
pmed2 200 0% 0% 0% 24 8
Because the MOCO CEM generates all the supported solutions, the metrics ER, GD and MFE are equal
to zero. Furthermore, the ONVG indicates the cardinality of the nondominated set, which is equivalent to
the number of efficient solutions. The ONVGR shows the ratio between the nondominated solutions and
the real Pareto points—in this case, estimated as efficient solutions divided by supported solutions. It
indicates that the MOCO CEM reveals 3.67 and 8 times more efficient solutions than supported solutions
for pmed1 and pmed2, respectively. Figures 1 and 2 show the efficient and supported solutions (ES and
SS) for both instances. Note that none of the efficient solutions is dominated by any supported solutions.
14700
14600
14500
14400
14300
Cost
ES
14200
SS
14100
14000
13900
13800
13950 14000 14050 14100 14150 14200 14250 14300
Kg of CO2
16
10900
10800
10700
10600
10500
Cost
ES
10400
SS
10300
10200
10100
10000
9300 9500 9700 9900 10100 10300 10500
Kg of CO2
The MOCO CEM thus is capable of solving the SFL problem. In the following section, we apply the
MOCO CEM to solve the SFL for a CPG company in the Mexico City metropolitan area. We aim to
provide managerial insights regarding the structure of efficient solutions for a practical case.
The Mexico City metropolitan area is among the largest regions in any developing country; it includes
more than 18 million inhabitants, more than 2.5 million vehicles and 35,000 industries that consume more
than 44 million liters of fuel per day (Molina and Molina, 2000). Therefore, a reduction proposal
conducted in this region could significantly affect global carbon emissions. To study the type of solutions
for the SFL, we ran experiments using data from a CPG company operating in this area. This company
has operations throughout Mexico. It manages approximately 80,000 delivery points in the Mexico City
metropolitan area, with an average demand per year of approximately 2.3 million tons. The company
assigns each truck to a specific zone of approximately 100 square kilometers.
The company decision makers want to evaluate the location of 10 distribution centers and have previously
defined 18 candidate locations. Figure 3 shows a map of the area divided by square zones. Dark colors
indicate high concentration of demand. We estimated the distance between points using the great circle
distance approximation (for the distance matrix, see the Appendix).
17
Figure 3- Map of the Mexico City metropolitan area divided by squared clusters of 100 square
kilometers. Darker areas represent higher demand. Black points represent the candidate locations.
The goal of the experiment is to indicate which efficient solutions of the SFL problem are most beneficial
to the company. Because decision makers likely seek alternatives that reduce emissions but keep costs
low, we analyze the conditions in which the efficient frontier contains solutions, such that marginal
increases in cost imply significant reductions in carbon emissions. We also investigate the possible causes
of the problem that drive the number of efficient solutions.
1. Truck assignment:
a) Trucks are assigned based on the area’s conditions (e.g., only small trucks can access
downtown).
b) Trucks are assigned without considering the area’s conditions (e.g., large trucks are assigned
to regions with high demand).
18
2. Fixed cost assignment:
a) We identify high fixed costs for short distance trajectories and vice versa (High 𝐴𝑖𝑗 – Short
𝑑𝑖𝑗 ).
b) We identify high fixed costs for large distance trajectories and vice versa (High 𝐴𝑖𝑗 – Large
𝑑𝑖𝑗 ).
Our response variables are the number of nondominated solutions (NDS) and the ratio between the
reductions in carbon emissions divided by the increase in costs (RCC). For this last indicator, we consider
only the largest value. We replicate each setting 10 times. Table 6 shows the results for the NDS response
variable. The numbers suggest that when high fixed costs are present in short distance trajectories, the
number of nondominated solutions is larger than when high fixed costs exist in large distance trajectories.
Table 7 shows the results for the RCC response variable. We notice similar behavior with the NDS
response variable, such that when high fixed costs are present for short distance trajectories, the
percentage of CO2 reduction divided by the cost increase percentage is larger than when high fixed costs
are present for large distance trajectories. We obtain large numbers (e.g., replicate 3 reports 1.9 million)
because the increase in cost is close to 0% (2 E^10-7%).
19
Table 7. Results for RCC response variable (CO2 reduction divided by the increase in cost)
MCMA conditions Large trucks to high demand nodes
Replicates High Aij - Large dij High Aij - Short dij High Aij - Large dij High Aij - Short dij
1 1.09 47,442,889.08 0.12 384,331.72
To determine which factors affect the response variables, we conducted two analyses of variance. Table 8
shows the analysis of variance for the NDS response variable. We conclude that the assignment of fixed
costs to distances explains the number of nondominated solutions for the problem, independent of the
area’s conditions.
Table 9 shows the analysis of variance for the RCC response variable. We conclude that the truck
assignment, the assignment of fixed costs to distances and their interaction explain the percentage of CO2
reduction divided by the percentage of increase in cost for the problem.
20
Table 9. Analysis of variance for the RCC response variable (CO2 reduction divided by the increase
in cost)
Source DF SS MS F P
Truck assignment 1 2.82909E+18 2.82909E+18 19561.8 .000
Fixed cost & distance 1 6.14065E+18 6.14065E+18 42459.6 .000
Interaction 1 2.82909E+18 2.82909E+18 19561.8 .000
Error 36 5.20644E+15 1.44623E+14
To demonstrate the structure of Pareto approximation for the case study, we present some examples of the
results from the experiment. Figure 4, Panel A, shows an example of the Pareto approximation for the
area’s conditions with high fixed costs in short distance trajectories. Figure 4, Panel B, shows only the
nondominated solutions with an increase in cost close to zero (less than 1.4 E^10-6%). Note that it is
possible to achieve a significant reduction in carbon emissions (~40%) with almost no cost increase,
which may make the solutions equivalent for practical purposes.
1.6E-06
12%
1.4E-06
10%
1.2E-06
% of Cost increase
% of Cost increase
8% 1.0E-06
6% 8.0E-07
6.0E-07
4%
4.0E-07
2% 2.0E-07
0% 0.0E+00
0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%
% of CO2 reduction % of CO2 reduction
Figure 4 (A): Pareto approximation for the area’s conditions with high fixed costs found in short
distance trajectories; and (B): Sample of points with less than 1% of increase in cost.
Figure 5 shows the locations in the map for three Pareto approximation points from Figure 4. Panel A
shows the cost optimal location, Panel B shows a location with 36% of carbon reduction with an increase
in cost of 3 E^10-5% and Panel C shows the carbon emissions optimal location with 12.5% of increase in
cost.
21
A: Cost optimal location B: Location with 36% of carbon reduction and
cost increase of 3 E^10-5%
Note that the solutions shown in Panels A and B of Figure 5 are similar in terms of changing only two
locations (X8 and X14 by X15 and X10). Furthermore, the CO2 optimal location (Panel C) is different than
the other solutions in terms of locating facilities closer to regions with high concentration of demand (and
also in terms of truck constraints).
22
Figure 6 shows an example of the Pareto approximation with high fixed costs in large distance
trajectories. Note that for these conditions, the three solutions result in similar costs and carbon emissions
(the largest difference is .025% of CO2 reduction with a cost increase of .55%).
0.6%
0.5%
% of Cost increase
0.4%
0.3%
0.2%
0.1%
0.0%
0.000% 0.005% 0.010% 0.015% 0.020% 0.025% 0.030%
% of CO2 reduction
Figure 6- Pareto approximation with high fixed costs in large distance trajectories
Figure 7, Panel A, shows an example of the Pareto approximation when the company does not need to
accommodate Mexico City metropolitan area conditions (e.g., large trucks may be assigned to regions
with high demand) and when high fixed costs exist in short distance trajectories. Figure 7, Panel B, shows
only the nondominated solutions with an increase in cost close to zero (less than 5 E^10-6%). Note that it
is possible to achieve high reductions in carbon emissions (~25%) with almost no cost increase, similar to
the solutions shown in Figure 4, which may also make the solutions equivalent for practical purposes.
10% 5.0E-06
9% 4.5E-06
8% 4.0E-06
7% 3.5E-06
% of Cost increase
% of Cost increase
6% 3.0E-06
5% 2.5E-06
4% 2.0E-06
3% 1.5E-06
2% 1.0E-06
1% 5.0E-07
0% 0.0E+00
0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30%
% of CO2 reduction % of CO2 reduction
Figure 7 (A): Pareto approximation when the company does not accommodate Mexico City and
metropolitan area conditions and with high fixed costs in short distance trajectories; (B): Sample of
points with less than 1% of increase in cost.
23
Figure 8 shows the locations in the map for three Pareto approximation points from Figure 7. Panel A
indicates the cost optimal location, Panel B shows a location with 26% of carbon reduction with an
increase in cost of 4.7 E^10-4% and Panel C shows the carbon emissions optimal location with 9% of
increase in cost.
Note that the CO2 optimal location (Panel C) is different than the other solutions in terms of locating
facilities closer to regions with high concentration of demand (and also in terms of truck constraints).
24
Figure 9 shows an example of the Pareto approximation when the company accounts for Mexico City
metropolitan area conditions and experiences high fixed costs with large distance trajectories. Similar to
Figure 6, under these conditions, the three solutions result in similar costs and carbon emissions (the
largest difference is .12% of CO2 reduction with an increase in cost of almost 1.2%).
1.4%
1.2%
1.0%
% of Cost increase
0.8%
0.6%
0.4%
0.2%
0.0%
0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14%
% of CO2 reduction
Figure 9- Pareto approximation for nonconstrained delivery conditions with high fixed costs for
large distance trajectories
5. Conclusions
Transportation is a main contributing factor of carbon emissions, and studies indicate that these emissions
will increase in the future. This situation suggests that firms need more efficient transport logistics
operations to reduce CO2 emissions while keeping costs low. In the current study, we investigate the
trade-off between cost and CO2 using a multiobjective approach for the p-Median problem. We provide
three main contributions: First, we introduce the SFL problem, a multiobjective p-Median model with
new cost and CO2 objective functions that allow us to take into account vehicle access limitations in the
demand nodes. Second, to solve the SFL, we develop an adaptation of the MOO CEM: the MOCO CEM.
We test our algorithm against problems from prior literature and show that the MOCO CEM can solve the
multiobjective p-Median problem efficiently by finding efficient and supported solutions and by
performing better in the different metrics. Finally, we provide managerial insights on the structure of the
Pareto frontier using an application for an actual company: we conduct an experimental study of the
MOCO CEM by solving the SFL for a multinational CPG company that operates in Mexico City
metropolitan area. Our intention is to analyze two scenarios: when high fixed costs exist in short distance
trajectories and when high fixed costs exist in large distance trajectories. The results show that regardless
of Mexico City conditions, when high fixed costs are present in short distance trajectories, CO2 emission
25
reductions are much larger (~40% considering area conditions and 25% not considering these conditions)
than the increase in cost (almost 0% in both cases). The results also show that these CO2 savings can be
achieved by only changing a small subset of locations. The study provides insights that can help
companies make better decisions by analyzing the cost and CO2 trade-offs for the facility location
problem.
We leave comparison of the MOCO CEM against other algorithms from the literature as a fruitful future
research avenue. Furthermore, including other type of pollutants—such as noise, particulate matter, CO
and NOx—as possible objective functions in the SFL model is a worthwhile research direction. For this
problem, researchers may need to develop new heuristics strategies to accommodate the complexities.
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29
APPENDIX: DISTANCE MATRIX (IN KILOMETERS) FOR THE CPG COMPANY
Node/Candidate Location 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1 57.5 59.3 62.4 78.4 59.1 49.9 59.2 83.5 62.4 62.8 60.6 68.6 81.7 73.8 42.6 83.6 84.1 88.6
2 63.0 64.6 67.2 82.1 64.1 55.0 65.5 87.5 67.2 67.2 65.7 73.2 85.7 78.7 47.9 88.0 88.6 92.7
3 45.0 46.8 50.2 66.7 46.7 37.5 46.5 71.6 50.2 50.7 48.3 56.5 69.7 61.4 30.2 71.5 71.9 76.6
4 50.3 51.9 54.6 70.0 51.5 42.3 52.8 75.2 54.6 54.7 53.0 60.6 73.4 66.1 35.2 75.6 76.1 80.3
5 56.4 57.9 59.9 74.1 57.2 48.3 59.8 79.6 59.9 59.7 58.7 65.7 77.9 71.5 41.4 80.4 81.0 84.8
6 28.6 30.8 36.2 54.4 32.2 25.3 25.6 57.6 36.2 38.1 33.4 42.2 55.6 44.7 21.3 55.7 55.9 61.8
7 29.4 31.5 36.2 54.2 32.3 23.8 28.7 58.2 36.2 37.5 33.6 42.5 56.2 46.2 17.8 57.0 57.3 62.8
8 32.6 34.5 38.3 55.5 34.6 25.4 33.8 60.1 38.2 39.1 36.1 44.6 58.1 49.2 18.3 59.6 60.0 64.9
9 37.5 39.2 42.1 58.0 38.9 29.7 40.2 63.1 42.1 42.4 40.4 48.2 61.3 53.5 22.5 63.2 63.7 68.2
10 43.7 45.2 47.2 61.7 44.4 35.6 47.3 67.2 47.2 47.1 46.0 53.1 65.4 58.8 28.8 67.8 68.4 72.3
11 50.7 51.9 53.3 66.4 50.9 42.5 55.0 72.1 53.3 52.8 52.4 58.8 70.4 64.9 36.1 73.2 73.8 77.3
12 22.1 24.0 29.7 47.0 26.1 22.6 16.3 49.2 29.8 32.1 26.8 34.8 47.4 35.8 22.5 46.7 46.7 52.9
13 19.5 21.6 27.0 45.2 23.1 16.9 16.7 48.3 27.1 29.0 24.2 33.0 46.4 35.5 14.7 46.5 46.7 52.6
14 20.5 22.6 27.1 45.0 23.2 14.6 21.1 49.1 27.1 28.3 24.6 33.4 47.1 37.4 8.9 48.1 48.4 53.7
15 24.8 26.6 29.8 46.5 26.4 17.1 27.6 51.3 29.7 30.3 27.9 36.0 49.4 41.1 9.8 51.1 51.5 56.3
16 31.1 32.5 34.5 49.5 31.7 22.9 35.2 54.8 34.5 34.5 33.2 40.4 53.0 46.1 16.4 55.3 55.8 60.0
17 38.3 39.5 40.7 53.8 38.3 30.2 43.1 59.5 40.6 40.1 39.8 46.1 57.8 52.2 24.3 60.5 61.1 64.6
18 46.1 47.1 47.6 59.1 45.7 38.1 51.4 64.9 47.6 46.7 47.1 52.6 63.4 58.9 32.7 66.4 67.1 70.1
19 21.9 23.0 28.0 42.3 25.5 26.6 14.1 43.0 28.0 30.7 25.5 31.1 41.4 29.7 29.7 39.6 39.4 45.7
20 14.7 16.3 21.8 38.3 18.6 18.1 7.6 40.2 21.9 24.4 19.0 26.3 38.4 26.7 20.9 37.5 37.5 43.7
21 10.3 12.4 18.0 36.1 14.1 10.1 8.4 39.1 18.0 20.1 15.1 23.8 37.2 26.3 12.2 37.4 37.6 43.4
22 12.2 14.0 18.0 35.8 14.3 5.4 15.4 40.0 18.0 19.2 15.7 24.4 38.1 28.8 3.5 39.2 39.6 44.8
23 18.6 19.8 21.9 37.7 19.0 10.4 23.6 42.7 21.8 22.0 20.5 27.9 40.8 33.4 5.4 42.8 43.4 47.8
24 26.4 27.3 28.0 41.3 25.9 18.5 32.0 46.9 28.0 27.4 27.3 33.4 45.2 39.5 14.1 47.8 48.4 52.1
25 34.6 35.3 35.3 46.4 33.7 27.0 40.7 52.2 35.2 34.2 35.0 40.0 50.6 46.4 22.9 53.7 54.4 57.4
26 51.6 52.1 51.2 59.1 50.2 44.3 58.0 65.2 51.2 49.8 51.4 55.1 63.8 61.7 40.4 67.5 68.2 70.1
27 19.5 19.7 23.4 34.9 22.0 26.3 12.7 34.8 23.4 26.0 21.5 24.8 33.3 22.0 31.4 31.1 30.8 37.1
28 10.7 11.1 15.5 29.9 13.6 17.7 4.5 31.3 15.5 18.2 13.2 18.4 29.5 17.7 23.3 28.4 28.3 34.6
29 2.1 3.6 9.3 27.0 5.9 9.4 5.7 29.9 9.4 11.8 6.4 14.7 28.0 17.2 15.9 28.2 28.4 34.2
30 6.9 7.5 9.3 26.7 6.3 3.9 14.1 31.0 9.3 10.1 7.8 15.6 29.1 20.8 10.7 30.6 31.1 35.9
31 15.6 15.9 15.5 29.1 14.0 9.8 22.7 34.4 15.5 14.7 15.3 20.7 32.7 26.9 11.5 35.1 35.7 39.6
32 24.3 24.5 23.4 33.7 22.5 18.1 31.4 39.5 23.4 22.0 23.7 27.6 37.9 34.1 17.4 41.0 41.7 44.7
33 33.1 33.2 31.7 39.7 31.2 26.7 40.2 45.7 31.7 30.1 32.2 35.4 44.3 41.9 25.0 47.8 48.6 50.8
34 50.6 50.7 48.9 54.1 48.6 44.1 57.7 60.1 48.8 47.0 49.6 51.8 58.9 58.4 41.6 62.8 63.6 64.8
35 29.4 28.8 30.6 35.9 30.8 37.2 24.2 33.7 30.7 32.8 29.7 29.4 32.8 24.1 43.0 29.2 28.6 34.2
36 21.1 20.4 21.9 28.6 22.2 29.2 17.1 27.3 21.9 24.1 21.1 20.9 26.1 16.1 35.5 23.2 22.8 28.9
37 13.5 12.3 13.1 22.2 13.8 21.7 12.3 22.6 13.2 15.3 12.6 12.6 21.0 9.4 28.5 19.4 19.3 25.6
38 8.5 6.5 4.5 18.0 6.5 15.6 12.8 20.7 4.5 6.6 4.9 5.9 18.7 8.4 22.9 19.1 19.4 25.0
39 10.7 9.2 4.5 17.5 6.8 13.1 18.2 22.3 4.5 2.3 6.6 8.0 20.4 14.3 19.7 22.5 23.1 27.3
40 17.6 16.8 13.2 21.1 14.3 15.9 25.5 26.8 13.1 11.0 14.7 15.7 25.2 22.2 20.1 28.4 29.1 32.0
41 25.7 25.1 21.9 27.1 22.7 22.0 33.5 33.1 21.9 19.7 23.3 24.1 31.7 30.6 24.0 35.4 36.2 38.1
42 34.1 33.7 30.7 34.3 31.3 29.5 41.8 40.3 30.6 28.4 32.0 32.7 39.1 39.1 30.0 43.1 43.9 45.1
43 42.6 42.3 39.4 42.1 39.9 37.6 50.2 48.0 39.4 37.2 40.7 41.4 47.0 47.7 37.1 51.1 51.9 52.6
44 33.2 32.1 32.3 32.5 33.5 41.3 29.8 29.0 32.3 33.9 32.2 29.2 28.5 22.9 47.9 24.3 23.6 28.2
45 26.2 24.8 24.1 24.2 25.9 34.3 24.4 21.2 24.2 25.5 24.4 20.6 20.5 14.2 41.2 16.6 16.0 21.5
46 20.5 18.7 16.6 16.2 19.2 28.2 21.3 14.6 16.6 17.6 17.6 12.1 13.4 5.6 35.5 10.7 10.4 16.7
47 17.6 15.5 11.1 9.6 14.8 23.9 21.6 11.5 11.1 10.8 13.3 4.9 9.5 3.7 31.1 10.2 10.7 15.8
48 18.8 16.9 11.1 8.7 14.9 22.3 25.1 14.2 11.1 8.9 14.1 7.3 12.5 12.2 28.8 15.7 16.5 19.3
49 23.4 21.9 16.6 14.6 19.5 24.0 30.8 20.6 16.6 13.9 19.2 15.3 19.4 20.9 29.1 23.3 24.1 25.5
50 30.0 28.8 24.1 22.4 26.3 28.5 37.7 28.3 24.1 21.5 26.4 23.9 27.3 29.6 31.9 31.5 32.3 32.8
51 37.4 36.5 32.3 30.7 34.0 34.6 45.2 36.4 32.2 29.7 34.3 32.5 35.6 38.4 36.6 39.9 40.8 40.7
52 45.3 44.6 40.7 39.2 42.1 41.7 53.1 44.8 40.6 38.2 42.5 41.2 44.1 47.1 42.7 48.5 49.3 48.9
53 38.9 37.4 36.2 31.6 38.3 47.0 36.9 26.7 36.3 37.3 36.9 31.8 26.9 25.3 53.9 22.4 21.6 24.4
54 33.1 31.4 29.2 22.8 31.9 40.9 32.7 18.0 29.3 29.9 30.3 24.2 18.1 17.8 48.1 13.7 12.8 16.1
55 28.8 26.8 23.4 14.1 26.7 36.0 30.4 9.4 23.5 23.5 25.2 17.5 9.4 12.0 43.3 4.9 4.1 8.8
56 26.8 24.7 19.9 5.5 23.8 32.7 30.6 2.3 19.9 19.0 22.4 13.5 0.7 11.3 39.8 3.8 4.7 6.9
57 27.6 25.6 19.9 3.6 23.9 31.5 33.2 8.6 19.9 18.0 22.8 14.6 8.1 16.2 38.0 12.6 13.4 13.1
58 31.0 29.1 23.5 12.2 27.0 32.8 37.7 17.2 23.4 20.9 26.3 19.8 16.9 23.5 38.2 21.3 22.1 21.1
59 36.2 34.6 29.3 20.9 32.2 36.2 43.5 25.9 29.2 26.6 31.9 27.0 25.6 31.5 40.4 30.0 30.9 29.6
60 42.5 41.2 36.3 29.7 38.7 41.2 50.2 34.6 36.2 33.6 38.7 34.9 34.3 39.8 44.2 38.8 39.6 38.2
61 49.6 48.5 43.9 38.4 46.0 47.3 57.4 43.4 43.9 41.2 46.1 43.1 43.1 48.3 49.3 47.5 48.4 46.8
62 40.9 39.0 36.0 25.1 39.1 48.4 41.4 19.2 36.0 36.2 37.6 30.2 20.2 24.5 55.6 16.3 15.6 15.1
63 37.5 35.5 31.5 17.5 35.1 44.3 39.6 11.5 31.5 31.1 33.6 25.2 12.9 20.7 51.5 10.2 9.8 6.7
64 36.0 33.9 29.0 11.7 32.9 41.7 39.8 7.0 29.0 27.9 31.5 22.6 9.0 20.3 48.6 9.7 10.0 3.9
65 36.6 34.5 29.0 11.0 33.0 40.8 41.8 10.9 29.0 27.2 31.9 23.3 12.1 23.4 47.2 15.4 16.1 11.8
66 39.2 37.3 31.5 16.0 35.3 41.7 45.4 18.5 31.5 29.2 34.5 26.9 19.1 28.9 47.4 23.1 23.8 20.3
67 43.4 41.7 36.0 23.4 39.4 44.4 50.4 26.8 36.0 33.5 38.9 32.5 27.1 35.7 49.2 31.3 32.1 29.0
68 48.9 47.3 41.9 31.4 44.9 48.6 56.2 35.3 41.9 39.3 44.6 39.3 35.5 43.2 52.3 39.8 40.6 37.7
69 55.1 53.8 48.7 39.8 51.3 53.9 62.7 43.9 48.6 46.0 51.2 46.8 44.0 51.1 56.7 48.3 49.1 46.4
70 46.5 44.4 40.1 24.2 43.8 52.9 48.8 18.6 40.1 39.4 42.3 33.7 20.4 29.7 60.1 18.8 18.5 13.5
71 45.3 43.1 38.1 20.4 42.1 50.7 48.9 16.2 38.1 36.9 40.7 31.8 18.2 29.4 57.6 18.6 18.7 12.4
72 45.7 43.6 38.1 20.0 42.1 50.0 50.6 18.3 38.1 36.4 41.0 32.3 19.9 31.6 56.4 22.1 22.5 16.6
73 47.8 45.8 40.1 23.1 44.0 50.8 53.6 23.6 40.1 37.9 43.0 35.0 24.8 35.9 56.6 28.0 28.6 23.5
74 51.3 49.5 43.7 28.7 47.3 53.0 57.9 30.5 43.7 41.3 46.7 39.5 31.4 41.6 58.1 35.1 35.8 31.3
75 56.0 54.3 48.7 35.6 52.0 56.6 63.0 38.2 48.7 46.1 51.5 45.2 38.8 48.2 60.8 42.8 43.5 39.5
76 61.6 60.0 54.6 43.1 57.6 61.1 68.9 46.2 54.6 52.0 57.3 51.8 46.7 55.4 64.6 50.8 51.6 47.9
77 67.8 66.4 61.2 51.1 63.9 66.5 75.4 54.5 61.2 58.5 63.8 59.0 54.9 63.0 69.3 59.1 59.9 56.4
78 54.5 52.3 47.3 29.4 51.3 59.8 58.1 25.5 47.3 46.0 49.9 41.0 27.4 38.6 66.7 27.7 27.7 21.5
79 54.9 52.7 47.3 29.1 51.3 59.2 59.5 26.8 47.3 45.6 50.1 41.4 28.6 40.3 65.6 30.1 30.4 24.2
80 56.6 54.6 48.9 31.4 52.8 59.9 62.1 30.7 48.9 46.8 51.8 43.5 32.1 43.7 65.8 34.7 35.1 29.3
81 59.6 57.7 51.9 35.7 55.7 61.8 65.8 36.2 51.9 49.6 54.9 47.2 37.5 48.5 67.0 40.6 41.2 35.9
82 63.7 61.9 56.2 41.4 59.7 64.8 70.4 42.9 56.1 53.7 59.1 52.1 43.9 54.3 69.4 47.5 48.1 43.2
83 68.6 66.9 61.4 48.0 64.6 68.9 75.7 50.2 61.3 58.8 64.2 57.9 51.0 60.8 72.8 54.8 55.5 51.0
84 63.7 61.6 56.5 38.5 60.5 69.0 67.3 34.7 56.5 55.2 59.1 50.2 36.6 47.8 75.7 36.8 36.8 30.6
85 64.0 61.9 56.5 38.3 60.5 68.4 68.5 35.7 56.5 54.8 59.3 50.5 37.5 49.2 74.8 38.7 38.9 32.6
86 65.5 63.5 57.8 40.0 61.8 69.0 70.8 38.7 57.8 55.8 60.7 52.3 40.3 52.0 75.0 42.4 42.7 36.6
30
Working Papers Beta 2009 - 2014
448 2014 The Share-a-Ride Problem: People and Parcels Baoxiang Li, Dmitry Krushinsky,
Sharing Taxis Hajo A. Reijers, Tom Van Woensel
447 2014 Stochastic inventory models for a single item K.H. van Donselaar, R.A.C.M.
at a single location Broekmeulen
446 2014 Optimal and heuristic repairable stocking and Joachim Arts, Rob Basten,
expediting in a fluctuating demand environment Geert-Jan van Houtum
445 2014 Connecting inventory control and repair shop M.A. Driessen, W.D. Rustenburg,
control: a differentiated control structure for G.J. van Houtum, V.C.S. Wiers
repairable spare parts
444 2014 A survey on design and usage of Software Samuil Angelov, Jos Trienekens,
Reference Architectures Rob Kusters
Extending and Adapting the Architecture Tradeoff Samuil Angelov, Jos J.M. Trienekens,
443 2014 Analysis Method for the Evaluation of Software Paul Grefen
Reference Architectures
A multimodal network flow problem with product Maryam SteadieSeifi, Nico Dellaert,
442 2014 Quality preservation, transshipment, and asset Tom Van Woensel
management
441 2013 Integrating passenger and freight transportation: Veaceslav Ghilas, Emrah Demir,
Model formulation and insights Tom Van Woensel
440 2013 The Price of Payment Delay K. van der Vliet, M.J. Reindorp,
J.C. Fransoo
439 2013 On Characterization of the Core of Lane Covering Behzad Hezarkhani, Marco Slikker,
Games via Dual Solutions Tom van Woensel
438 2013 Destocking, the Bullwhip Effect, and the Credit Maximiliano Udenio, Jan C. Fransoo,
Crisis: Empirical Modeling of Supply Chain Robert Peels
Dynamics
433 2013 Mode Allocation and Scheduling of Inland Stefano Fazi, Tom Van Woensel,
Container Transportation: A Case-Study in the
Netherlands Jan C. Fransoo
Socially responsible transportation and lot sizing: Yann Bouchery, Asma Ghaffari,
432 2013 Insights from multiobjective optimization Zied Jemai, Jan Fransoo
431 2013 Inventory routing for dynamic waste collection Martijn Mes, Marco Schutten,
Arturo Pérez Rivera
430 2013 Simulation and Logistics Optimization of an N.J. Borgman, M.R.K. Mes,
Integrated Emergency Post I.M.H. Vliegen, E.W. Hans
429 2013 Last Time Buy and Repair Decisions for Spare S. Behfard, M.C. van der Heijden,
Parts A. Al Hanbali, W.H.M. Zijm
428 2013 A Review of Recent Research on Green Road Emrah Demir, Tolga Bektas, Gilbert
Freight Transportation Laporte
Typology of Repair Shops for Maintenance M.A. Driessen, V.C.S. Wiers,
427 2013 Spare Parts G.J. van Houtum, W.D. Rustenburg
Single Vehicle Routing with Stochastic Demands: C. Zhang, N.P. Dellaert, L. Zhao,
425 2013 Approximate Dynamic Programming T. Van Woensel, D. Sever
423 2013 Dynamic Shortest Path Problem with Travel-Time- Derya Sever, Lei Zhao, Nico Dellaert,
Dependent Stochastic Disruptions: Hybrid
Approximate Dynamic Programming Algorithms Tom Van Woensel, Ton de Kok
with a Clustering Approach
System-oriented inventory models for spare R.J.I. Basten, G.J. van Houtum
422 2013 parts
Lost Sales Inventory Models with Batch Ordering T. Van Woensel, N. Erkip, A. Curseu,
421 2013 And Handling Costs J.C. Fransoo
420 2013 Response speed and the bullwhip Maximiliano Udenio, Jan C. Fransoo,
Eleni Vatamidou, Nico Dellaert
419 2013 Anticipatory Routing of Police Helicopters Rick van Urk, Martijn R.K. Mes,
Erwin W. Hans
418 2013 Supply Chain Finance: research challenges Kasper van der Vliet, Matthew J.
ahead Reindorp, Jan C. Fransoo
Regional logistics land allocation policies: Frank P. van den Heuvel, Peter W. de
416 2013 Stimulating spatial concentration of logistics Langen, Karel H. van Donselaar,
firms Jan C. Fransoo
The development of measures of process Heidi L. Romero, Remco M. Dijkman,
415 2013 harmonization Paul W.P.J. Grefen, Arjan van Weele
The Time-Dependent Vehicle Routing Problem Duygu Tas, Nico Dellaert, Tom van
413 2013 with Soft Time Windows and Stochastic Travel Woensel, Ton de Kok
Times
412 2013 Clearing the Sky - Understanding SLA Marco Comuzzi, Guus Jacobs,
Elements in Cloud Computing Paul Grefen
411 2013 Approximations for the waiting time distribution A. Al Hanbali, E.M. Alvarez,
In an M/G/c priority queue M.C. van der van der Heijden
410 2013 To co-locate or not? Location decisions and Frank P. van den Heuvel, Karel H. van
logistics concentration areas Donselaar, Rob A.C.M. Broekmeulen,
Jan C. Fransoo, Peter W. de Langen
409 2013
The Time-Dependent Pollution-Routing Problem Anna Franceschetti, Dorothée
Honhon,Tom van Woensel, Tolga
Bektas, GilbertLaporte.
A Vehicle Routing Problem with Flexible Time Duygu Tas, Ola Jabali, Tom van
403 2013 Windows
Woensel
402 2012 The Service Dominant Business Model: A Egon Lüftenegger, Marco Comuzzi,
Service Focused Conceptualization Paul Grefen, Caren Weisleder
401 2012 Relationship between freight accessibility and Frank P. van den Heuvel, Liliana
Logistics employment in US counties Rivera,Karel H. van Donselaar, Ad de
Jong,Yossi Sheffi, Peter W. de Langen,
Jan C.Fransoo
400 2012 A Condition-Based Maintenance Policy for Multi- Qiushi Zhu, Hao Peng, Geert-Jan van
Component Systems with a High Maintenance
Houtum
Setup Cost
399 2012 A flexible iterative improvement heuristic to E. van der Veen, J.L. Hurink,
Support creation of feasible shift rosters in
J.M.J. Schutten, S.T. Uijland
Self-rostering
397 2012 Destocking, the bullwhip effect, and the credit Maximiliano Udenio, Jan C. Fransoo,
Crisis: empirical modeling of supply chain Robert Peels
Dynamics
396 2012 Vehicle routing with restricted loading J. Gromicho, J.J. van Hoorn, A.L. Kok
capacities J.M.J. Schutten
395 2012 Service differentiation through selective E.M. Alvarez, M.C. van der Heijden,
lateral transshipments I.M.H. Vliegen, W.H.M. Zijm
393 2012 Business Process Technology and the Cloud: Vasil Stoitsev, Paul Grefen
Defining a Business Process Cloud Platform
392 2012 Vehicle Routing with Soft Time Windows and D. Tas, M. Gendreau, N. Dellaert,
Stochastic Travel Times: A Column Generation T. van Woensel, A.G. de Kok
And Branch-and-Price Solution Approach
391 2012 Improve OR-Schedule to Reduce Number of J.T. v. Essen, J.M. Bosch, E.W. Hans,
Required Beds M. v. Houdenhoven, J.L. Hurink
390 2012 How does development lead time affect Andres Pufall, Jan C. Fransoo, Ad de
performance over the ramp-up lifecycle? Jong
The Impact of Product Complexity on Ramp- Frank P.v.d. Heuvel, Peter W.de
388 2012 Up Performance Langen,
Karel H. v. Donselaar, Jan C. Fransoo
Co-location synergies: specialized versus diverse Frank P.v.d. Heuvel, Peter W.de
Langen,
387 2012 logistics concentration areas
Karel H. v.Donselaar, Jan C. Fransoo
379 2012 Proximity matters: Synergies through co-location Heidi Romero, Remco Dijkman,
of logistics establishments Paul Grefen, Arjan van Weele
378 2012 A literature review in process harmonization: a S.W.A. Haneya, J.M.J. Schutten,
conceptual framework P.C. Schuur, W.H.M. Zijm
MyPHRMachines: Lifelong Personal Health E.M. Alvarez, M.C. van der Heijden,
373 2012 Records in the Cloud W.H.M. Zijm
372 2012 Service differentiation in spare parts supply Frank Karsten, Rob Basten
through dedicated stocks
Spare parts inventory pooling: how to share X.Lin, R.J.I. Basten, A.A. Kranenburg,
371 2012
the benefits G.J. van Houtum
367 2011 Operating Room Rescheduling Kristel M.R. Hoen, Tarkan Tan, Jan C.
Fransoo, Geert-Jan van Houtum
361 2011 Approximating Multi-Objective Time-Dependent Said Dabia, Stefan Röpke, Tom Van
Optimization Problems Woensel, Ton de Kok
360 2011 Branch and Cut and Price for the Time Dependent A.G. Karaarslan, G.P. Kiesmüller, A.G.
Vehicle Routing Problem with Time Window de Kok
335 2010 Analysis of the dial-a-ride problem of Hunsaker Murat Firat, Cor Hurkens
and Savelsbergh
Reducing costs of repairable spare parts supply F.P. van den Heuvel, P.W. de Langen,
328 2010 systems via dynamic scheduling K.H. van Donselaar, J.C. Fransoo
322 2010 Inventory reduction in spare part networks by E.M. Alvarez, M.C. van der Heijden,
selective throughput time reduction W.H. Zijm
An optimal approach for the joint problem of level R.J.I. Basten, M.C. van der Heijden,
298 2010
of repair analysis and spare parts stocking J.M.J. Schutten
Responding to the Lehman Wave: Sales Robert Peels, Maximiliano Udenio, Jan
297 2009 Forecasting and Supply Management during the C. Fransoo, Marcel Wolfs, Tom
Credit Crisis Hendrikx
Peter T. Vanberkel, Richard J.
An exact approach for relating recovering surgical Boucherie, Erwin W. Hans, Johann L.
296 2009
patient workload to the master surgical schedule Hurink, Wineke A.M. van Lent, Wim H.
van Harten