Recently, Ghanbari and Mahdavi-Amiri (2011) have proposed a model for the bus terminal location problem. Here, we want to improve Ghanbari and Mahdavi-Amiri’s model by defining three types of neighborhoods for each terminal. In our model, we consider a neighbor for each terminal, so the cost of service to stations in a neighborhood is individual. The proposed model is an NP-hard problem, so we suggest two algorithms based on the Tabu search and variable neighborhood search for solving it. Due to the Mann–Whitney and Dolan–Moré performance profiles, we use the recently proposed nonparametric statistical test to access the performance of numerical algorithms and demonstrate the efficiency of our proposed approach in comparison with other available methods.

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