Integer Optimization Model for a Logistic System based on Location-Routing Considering Distance and Chosen Route

In a distribution network it is important to decide the locations of facilities that impacts not only the profitability of an organization but the ability to serve customers.Generally the location-routing problem is to minimize the overall cost by simultaneously selecting a subset of candidate facilities and constructing a set of delivery routes that satisfy some restrictions. In this paper we impose restriction on the route that should be passed for delivery. We use integer programming model to describe the problem. A feasible neighbourhood search is proposed to solve the result model. (paper)