A hybrid simulated annealing based heuristic for solving the location-routing problem with fuzzy demands

The location-routing problem (lrp) is established as a new research area in the context oflocation analysis, which deals simultaneously with two problems of locating the facilities and designingthe travel routes for vehicles among established facilities and existing demand points. in this paper, thelocation-routing problem with fuzzy demands (lrpfd) is considered which may arise in many real lifesituations in logistics management, and a fuzzy chance constrained program is designed to model it,based on the fuzzy credibility theory. a hybrid simulated annealing (sa) based heuristic incorporatedwith stochastic simulation is developed and proposed to solve the problem. the efficiency of the solutionprocedure is demonstrated via comparing its performance with those of some other existing solutionprocedures from literature using a standard benchmark set of test problems.