An Optimization Model for Cross-Docking Operation Scheduling and Distribution
摘要
Logistics is an element of supply chain management that includes warehousing processes, transportation, and distribution. To ensure the procurement and distribution process can run well, a strategy is needed that can reduce transportation costs, lead time, and inventory, which is called cross-docking. The principle of cross docking is to unload, sort, and consolidate the products by directly transferring goods from inbound to outbound transportation with minimum storage. This research discusses cross-docking which includes suppliers, cross-docking centers, and retailers. The developed model aims to minimize the total costs involved in the distribution process, including penalty costs for additional capacity in storage, penalty costs for additional capacity in the cross-docking area, vehicle rental costs, and product storage costs at the cross-docking center. The proposed model is solved with an analytical approach and conducted using LINGO 18.0 software with Global Solver which operates within a branch-and-bound framework producing a feasible solution. The model is tested using a numerical example and validated through sensitivity analysis. The sensitivity analysis shows that the objective function is sensitive to changes in supply quantity, product demand quantity, capacity in storage, and number of outbound trucks.