Distribution Decision Model for Cross-Docking

At the cross-dock, goods are delivered by the suppliers in pallet, and occasionally, the received quantity may not match the total distribution demand, leading to excess or undersized shipments. This leads to a problem of determining which customer should bear the surplus or shortage and paying any related fines becomes necessary. In frozen delivery processes, time sensitivity is crucial and must be prompt and efficient. However, in the dynamic environment of Ho Chi Minh City, challenges arise when deviate from the scheduled time, requiring acceptance of such variations. This delivery problem also involves efficiently allocating vehicles, handling under- or over-deliveries, and managing the issues of early and late delivery. The ultimate goal of this paper is to devise an optimized schedule and an effective vehicle allocation strategy that minimizes the impact of three cost factors: transportation costs, penalties for early/late deliveries, and penalties for delivering incorrect amounts. In this study, a robust model will be presented to address and tradeoff the considerations of the three associated costs. This model’s outcomes will serve as a valuable tool for making informed distribution decisions, particularly for the handling of frozen products.