Scheduling cross-docking operations under uncertainty: A stochastic genetic algorithm based on scenarios tree

A cross-docking terminal enables consolidating and sorting fast-moving products along supply chain networks and reduces warehousing costs and transportation efforts. The target efficiency of such logistic systems results from synchronizing the physical and information flows while scheduling receiving, shipping and handling operations. Within the tight time-windows imposed by fast-moving products (e.g., perishables), a deterministic schedule hardly adheres to real-world environments because of the uncertainty in trucks arrivals. In this paper, a stochastic MILP model formulates the minimization of penalty costs from exceeding the time-windows under uncertain truck arrivals. Penalty costs are affected by products' perishability or the expected customer’ service level. A validating numerical example shows how to solve (1) dock-assignment, (2) while prioritizing the unloading tasks, and (3) loaded trucks departures with a small instance. A tailored stochastic genetic algorithm able to explore the uncertain scenarios tree and optimize cross-docking operations is then introduced to solve scaled up instaces. The proposed genetic algorithm is tested on a real-world problem provided by a national delivery service network managing the truck-to-door assignment, the loading, unloading, and door-to-door handling operations of a fleet of 271 trucks within two working shifts. The obtained solution improves the deterministic schedule reducing the penalty costs of 60%. Such results underline the impact of unpredicted trucks’ delay and enable assessing the savings from increasing the number of doors at the cross-dock

Design and Analysis of Efficient Freight Transportation Networks in a Collaborative Logistics Environment

The increase in total freight volumes, reducing volume per freight unit, and delivery deadlines have increased the burden on freight transportation systems of today. With the evolution of freight demand trends, there also needs to be an evolution in the freight distribution processes. Today\u27s freight transportation processes have a lot of inefficiencies that could be streamlined, thus preventing concerns like increased operational costs, road congestion, and environmental degradation. Collaborative logistics is one of the approaches where supply chain partners collaborate horizontally or/and vertically to create a centralized network that is more efficient and serves towards a common goal or objective. In this dissertation, we study intermodal transportation, and cross-docking, two major pillars of efficient, cheap, and faster freight transportation in a collaborative environment. We design an intermodal network from a centralized network perspective where all the participants intermodal operators, shippers, carriers, and customers strive towards a synchronized and cost-efficient freight network. Also, a cross-dock scheduling problem is presented for competitive shippers using a centralized cross-dock facility. The problem develops a fast heuristic and meta-heuristic approach to solve large-scale real-world problems and draws key insights from a cross-dock operator and inbound carrier\u27s perspectives

Ordonnancement de camions dans une plateforme logistique : complexité, méthodes de résolution et incertitudes

La problématique dite de crossdocking a été source de beaucoup d'attention ces dernières années dans la littérature. Un crossdock est une plateforme logistique favorisant, par une synchronisation efficace des camions entrants et sortants, une rotation rapide des produits, le volume de produits stockés devant être le plus faible possible. Le crossdocking soulève de nombreux problèmes logistiques, dont notamment celui de l'ordonnancement des camions entrants et sortants sur les quais de la plateforme. L'objectif classiquement considéré dans la littérature pour ce problème est la minimisation du makespan, critère très répandu en d'ordonnancement. Pour le crossdocking néanmoins, minimiser la date de départ du dernier camion ne garantie pas nécessairement une bonne synchronisation des camions et le makespan ne semble donc pas être l'objectif le plus pertinent. Pour répondre au besoin de synchronisation et favoriser les rotations rapides, notre travail propose alternativement de minimiser la somme des temps de séjour des palettes dans le stock. Nous étudions d'abord la version déterministe de ce problème d'ordonnancement. Sa complexité est détaillée selon différentes hypothèses pour identifier les éléments menant à sa NP-difficulté. Différentes méthodes de résolutions sont proposées. Une méthode classique de programmation linéaire en nombres entiers utilisant des variables de décision indexées par le temps. Une famille d'inégalités valides est également proposée et exploitée dans un algorithme avec ajout itératif de coupes. Des méthodes basées sur la programmation par contraintes sont enfin proposées. Une analyse comparative de ces différentes méthodes est proposée. Dans un deuxième temps, nous étudions une version non-déterministe de notre problème d'ordonnancement dans laquelle des incertitudes sur les dates d'arrivée des camions sont introduites sous la forme d'intervalles de temps équiprobables. Une méthode d'ordonnancement proactive-réactive utilisant le concept de groupes d'opérations permutables est proposée pour faire face aux incertitudes. Des groupes de camions permutables sont séquencés et affectés aux quais puis, durant l'exécution d'ordonnancement, en fonction de la réalisation des dates d'arrivée, un ordre est choisi dans chaque groupe à l'aide d'un algorithme réactif.Crossdocking has received a lot of attention in the literature in recent years. A crossdock is a logistic platform that promotes rapid product turnover through efficient synchronization of incoming and outgoing trucks, with the volume of products stored being kept as low as possible. Crossdocking raises many logistical problems, including the scheduling of incoming and outgoing trucks on the platform's docks. The classical objective considered in the literature for this problem is the minimization of the makespan, a very common criterion in scheduling. However, for crossdocking, minimizing the departure date of the last truck does not necessarily guarantee a good synchronization of the trucks and the makespan does not seem to be the most relevant objective. In order to meet the need for synchronization and to help fast rotations, our work proposes alternatively to minimize the sum of the pallets' sojourn times in the warehouse. We first study the deterministic version of this scheduling problem. Its complexity is detailed under different assumptions to identify the elements leading to its NP-hardness. Different solution methods are proposed. A classical integer linear programming method using time-indexed decision variables. A family of valid inequalities is also proposed and exploited in an algorithm with iterative addition of cuts. Finally, methods based on constraint programming are proposed. A comparative analysis of these different methods is proposed. In a second step, we study a non-deterministic version of our scheduling problem in which uncertainties on truck arrival dates are introduced in the form of equiprobable time intervals. A proactive-reactive scheduling method using the concept of permutable operation groups is proposed to cope with the uncertainties. Groups of permutable trucks are sequenced and assigned to the docks and then, during the scheduling run, based on the realization of arrival dates, an order is chosen in each group using a reactive algorithm

Cross-Docking: A Proven LTL Technique to Help Suppliers Minimize Products\u27 Unit Costs Delivered to the Final Customers

This study aims at proposing a decision-support tool to reduce the total supply chain costs (TSCC) consisting of two separate and independent objective functions including total transportation costs (TTC) and total cross-docking operating cost (TCDC). The full-truckload (FT) transportation mode is assumed to handle supplier→customer product transportation; otherwise, a cross-docking terminal as an intermediate transshipment node is hired to handle the less-than-truckload (LTL) product transportation between the suppliers and customers. TTC model helps minimize the total transportation costs by maximization of the number of FT transportation and reduction of the total number of LTL. TCDC model tries to minimize total operating costs within a cross-docking terminal. Both sub-objective functions are formulated as binary mathematical programming models. The first objective function is a binary-linear programming model, and the second one is a binary-quadratic assignment problem (QAP) model. QAP is an NP-hard problem, and therefore, besides a complement enumeration method using ILOG CPLEX software, the Tabu search (TS) algorithm with four diversification methods is employed to solve larger size problems. The efficiency of the model is examined from two perspectives by comparing the output of two scenarios including; i.e., 1) when cross-docking is included in the supply chain and 2) when it is excluded. The first perspective is to compare the two scenarios’ outcomes from the total supply chain costs standpoint, and the second perspective is the comparison of the scenarios’ outcomes from the total supply chain costs standpoint. By addressing a numerical example, the results confirm that the present of cross-docking within a supply chain can significantly reduce total supply chain costs and total transportation costs

Warehousing and Inventory Management in Dual Channel and Global Supply Chains

More firms are adopting the dual-channel supply chain business model where firms offer their products to customers using dual-channel sales (to offer the item to customers online and offline). The development periods of innovative products have been shortened, especially for high-tech companies, which leads to products with short life cycles. This means that companies need to put their new products on the market as soon as possible. The dual-channel supply chain is a perfect tool to increase the customer’s awareness of new products and to keep customers’ loyalty; firms can offer new products online to the customer faster compared to the traditional retail sales channel. The emergence of dual-channel firms was mainly driven by the expansion in internet use and the advances in information and manufacturing technologies. No existing research has examined inventory strategies, warehouse structure, operations, and capacity in a dual-channel context. Additionally, firms are in need to integrate their global suppliers base; where the lower parts costs compensate for the much higher procurement and cross-border costs; in their supply chain operations. The most common method used to integrate the global supplier base is the use of cross-dock, also known as Third Party Logistic (3PL). This study is motivated by real-world problem, no existing research has considered the optimization of cross-dock operations in terms of dock assignment, storage locations, inventory strategies, and lead time uncertainty in the context of a cross-docking system. In this dissertation, we first study the dual-channel warehouse in the dual-channel supply chain. One of the challenges in running the dual-channel warehouse is how to organize the warehouse and manage inventory to fulfill both online and offline (retailer) orders, where the orders from different channels have different features. A model for a dual-channel warehouse in a dual-channel supply chain is proposed, and a solution approach is developed in the case of deterministic and stochastic lead times. Ending up with numerical examples to highlight the model’s validity and its usefulness as a decision support tool. Second, we extend the first problem to include the global supplier and the cross-border time. The impact of global suppliers and the effect of the cross-border time on the dual-channel warehouse are studied. A cross-border dual-channel warehouse model in a dual-channel supply chain context is proposed. In addition to demand and lead time uncertainty, the cross-border time is included as stochastic parameter. Numerical results and managerial insights are also presented for this problem. Third, motivated by a real-world cross-dock problem, we perform a study at one of the big 3 automotive companies in the USA. The company faces the challenges of optimizing their operations and managing the items in the 3PL when introducing new products. Thus, we investigate a dock assignment problem that considers the dock capacity and storage space and a cross-dock layout. We propose an integrated model to combine the cross-dock assignment problem with cross-dock layout problem so that cross-dock operations can be coordinated effectively. In addition to lead time uncertainty, the cross-border time is included as stochastic parameter. Real case study and numerical results and managerial insights are also presented for this problem highlighting the cross-border effect. Solution methodologies, managerial insights, numerical analysis as well as conclusions and potential future study topics are also provided in this dissertation