Design of waste supply chain network has been a challenge in a coordinated waste management system particularly in Indonesia in which there are hundreds of waste collection points to be handled. Due to its large scale, previous studies of waste management in Indonesia mainly focused on routing, leaving out the strategic aspect such as location. On the other hand, recent literature has proposed an integrated approach, namely the location routing problem (LRP) (integrating strategic and operational aspects), to attain global optimum of the integrated system. Therefore, this research applies LRP to the design of waste supply chain network in Yogyakarta
Special Region (Daerah Istimewa Yogyakarta – DIY).
This research develops a mathematical model of LRP for waste management. The developed model which is based on the real waste management system in DIY considers two types of fleet to determine depot locations, disposal location (act as waste-based power plant), service allocations, and associated routes. The goal of the model is to minimize total cost, consisting of facility costs (establishment of depot and disposal), vehicle fixed costs, and traveling costs. Since CPLEX can only give an optimal solution for small instances, this research proposes a simulated annealing to solve large instances. The proposed SA is tested on multi-depot vehicle routing problem with inter-depot routes (MDVRPI) instances, then the algorithm is implemented to the real scale of waste management in DIY, Indonesia. The proposed SA can obtain the solution for waste management case of DIY, Indonesia which consists of 849 nodes. The computational study shows that the proposed SA performs well on solving LRP for waste management.

Keywords: waste management system, location routing problem, heterogeneous vehicles

Design of waste supply chain network has been a challenge in a coordinated waste management system particularly in Indonesia in which there are hundreds of waste collection points to be handled. Due to its large scale, previous studies of waste management in Indonesia mainly focused on routing, leaving out the strategic aspect such as location. On the other hand, recent literature has proposed an integrated approach, namely the location routing problem (LRP) (integrating strategic and operational aspects), to attain global optimum of the integrated system. Therefore, this research applies LRP to the design of waste supply chain network in Yogyakarta
Special Region (Daerah Istimewa Yogyakarta – DIY).
This research develops a mathematical model of LRP for waste management. The developed model which is based on the real waste management system in DIY considers two types of fleet to determine depot locations, disposal location (act as waste-based power plant), service allocations, and associated routes. The goal of the model is to minimize total cost, consisting of facility costs (establishment of depot and disposal), vehicle fixed costs, and traveling costs. Since CPLEX can only give an optimal solution for small instances, this research proposes a simulated annealing to solve large instances. The proposed SA is tested on multi-depot vehicle routing problem with inter-depot routes (MDVRPI) instances, then the algorithm is implemented to the real scale of waste management in DIY, Indonesia. The proposed SA can obtain the solution for waste management case of DIY, Indonesia which consists of 849 nodes. The computational study shows that the proposed SA performs well on solving LRP for waste management.

Keywords: waste management system, location routing problem, heterogeneous vehicles

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