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This paper studies a stochastic multiperiod location-transportation problem (SMLTP) characterized by multiple transportation options, multiple demand periods, and a stochastic demand. We consider the determination of the number and location of the depots required to satisfy customer demand as well as the mission of these depots in terms of the subset of customers they must supply. The problem is formulated as a stochastic program with recourse, and a hierarchical heuristic solution approach is proposed. It incorporates a tabu search procedure, an approximate route length formula, and a modified procedure of Clarke and Wright (Clarke, G., J. W. Wright. 1964. Scheduling of vehicles from a central depot to a number of delivery points. Oper. Res. 12 568–581). Three neighborhood exploration strategies are proposed and compared with extensive experiments based on realistic problems.

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Transportation Science

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Permission is granted to post the Web-published PDF file of the above-mentioned article(s) on ERAU Scholarly Commons (the institutional repository of the Hunt Library at Embry-Riddle Aeronautical University). Articles may be posted with a 12-month embargo after publication by INFORMS. Please note that permission is granted for these articles only; further requests to post any additional articles by Soumia Ichoua or any other Embry-Riddle Aeronautical University authors that have been published by INFORMS must be submitted separately.