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Preprint 10-2010

Combinatorial Optimization & Graph Algorithms group (COGA-Preprints)

Approximation Algorithms for Capacitated Location Routing
not available
Approximation Algorithm, Location Routing, Vehicle Routing, Facility Location, Cross-Docking, Logistics
An approximation algorithm for an optimization problem runs in polynomial time for all instances and is guaranteed to deliver solutions with bounded optimality gap. We derive such algorithms for different variants of capacitated location routing, an important generalization of vehicle routing where the cost of opening the depots from which vehicles operate is taken into account. Our results originate from combining algorithms and lower bounds for different relaxations of the original problem, and besides location routing we also obtain approximation algorithms for multi-depot capacitated vehicle routing by this framework. Moreover, we extend our results to further generalizations of both problems, including a prize-collecting variant, a group version, and a variant where cross-docking is allowed. We finally present a computational study of our approximation algorithm for capacitated location routing on benchmark instances and large-scale randomly generated instances. Our study reveals that the quality of the computed solutions is much closer to optimality than the provable approximation factor.
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