This paper considers the stochastic version of the location-routing problem (SLRP) in which transportation cost and vehicle travel speeds are both stochastic. A hybrid solution procedure based on Ant Colony Optimization (ACO) and Discrete-Event Simulation (DES) is proposed. After using a sequential heuristic algorithm to solve the location subproblem, ACO is employed to solve the corresponding vehicle routing problem. DES is finally used to evaluate such vehicle routes in terms of their impact on the expected total costs of location and transport to customers. The approach is tested using random-generated data sets. because there are no previous works in literature that considers the same stochastic location-routing problem, the procedure is compared against the deterministic version of the problem. Results show that the proposed approach is very efficient and effective.
