A Variable Neighborhood Search Algorithm for Continuous Location Routing Problem with Pickup and Delivery

Location Routing Problem (LRP) is combination of Facility location Problem and Vehicle Routing Problem. The classic LRP considers a discrete number of locations as possible candidates for facilities locations. However, the continuous location routing problem (CLRP) as an extension to the classic LRP allows any location for the facilities and thus the solution space is continuous. There is a very scarce literature available for CLRP. In this paper, the CLRP with pickup and delivery is first formulated and to solve the problem, a Variable Neighborhood Search algorithm is used considering different neighborhoods and acceptation levels. Problems from small to large size can be solved and the experimentation results are promising.