Variable neighborhood search for location routing

In this paper we propose various neighborhood search heuristics (VNS) for solving the location routing problem with multiple capacitated depots and one uncapacitated vehicle per depot. The objective is to find depot locations and to design least cost routes for vehicles. We integrate a variable neighborhood descent as the local search in the general variable neighborhood heuristic framework to solve this problem. We propose five neighborhood structures which are either of routing or location type and use them in both shaking and local search steps. The proposed three VNS methods are tested on benchmark instances and successfully compared with other two state-of-the-art heuristics.