Ant colony optimisation algorithm for distribution-allocation problem in a two-stage supply chain with a fixed transportation charge

In a fixed charge transportation problem, each route is associated with a fixed charge (or a fixed cost) and a transportation cost per unit transported. The presence of the fixed cost makes the problem difficult to solve, thereby requiring the use of heuristic methods. In this paper, an algorithm based on ant colony optimisation is proposed to solve the distribution-allocation problem in a two-stage supply chain with a fixed transportation cost for a route. A numerical study on benchmark problem instances has been carried out. The results obtained for the proposed algorithm have been compared with that for the genetic algorithm-based heuristic currently available in the literature. It is statistically confirmed that the proposed algorithm provides significantly better solutions.