Harmony search for dynamic logistics network design of 4PL with disruption

Abstract

This paper studies logistics network design problem of fourth party logistics (4PL) in dynamic environment with disruptions to be considered. A two-stage stochastic optimization model is formulated. The first stage is to determine the network structure with the minimal total cost and the second stage is to minimize the operation cost of the network given disruption scenario. To solve it, a harmony search method is designed, which combines with Monte Carlo simulation. Several experiments are presented to test the significance of the model as well as the effectiveness of the proposed algorithm.