A column generation approach for location-routing problems with pickup and delivery

Thomas Capelle, Cristián E. Cortés, Michel Gendreau, Pablo A. Rey, Louis-Martin Rousseau

Abstract: Highlights•We propose an exact method for the location-routing problem with pickup and delivery.•We implement a solution method based on column generation and Branch and Price.•We solve the subproblem using an elementary shortest path procedure.•We rely on a four-level branching scheme to account for various decisions.•We analyze thoroughly the impact of fixed costs for depots and routes on solutions.