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

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

Integrating Dock-Door Assignment and Vehicle Routing in Cross-Docking

Cross-docking is a logistic strategy in which products arrive at terminals, are handled and then shipped to the corresponding destinations. Cross-docking consists of unloading products from inbound trucks and loading these products directly into outbound trucks with little or no storage in-between. Cross-docking aims to reduce or eliminate inventory by achieving an efficient synchronization of unloading trucks, material handling and loading trucks. This thesis introduces an integrated dock-door assignment and vehicle routing problem that consists of assigning a set of origin points to inbound doors at the cross-dock, consolidating commodities in-between inbound and outbound doors, and routing vehicles from outbound doors to destination points. The objective is to minimize the sum of the material handling cost at the cross-dock and the transportation cost for routing the commodities to their destinations. Five mixed integer programming formulations are presented and computationally compared. A column generation algorithm based on a set partitioning formulation is developed to obtain lower bounds on the optimal solution value. In addition, a heuristic algorithm is used to obtain upper bounds. Computational experiments are performed to assess the performance of the proposed MIP formulations and solution algorithms on a set of randomly generated instances

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

Horizontale en verticale samenwerking in distributieketens met cross-docks

Logistiek dienstverleners staan voor grote uitdagingen op het gebied van duurzaamheid, in het bijzonder vanwege de steeds kleiner wordende zendingen die just-in-time bij de klant moeten worden afgeleverd. Samenwerking tussen partners in de distributieketen en met concurrenten daarbuiten biedt kansen om deze uitdagingen het hoofd te bieden. Dit proefschrift richt zich op samenwerkingsvormen in distributieketens met cross-docks. Cross-docks zijn logistieke centra die bedrijven in staat stellen om kleine zendingen gegroepeerd te transporteren zonder dat daarvoor tussentijdse opslag nodig is. In een cross-dock worden goederen direct van inkomende naar uitgaande vrachtwagens verplaatst. Het succesvol toepassen van cross-docking vereist verticale samenwerking tussen partners in opeenvolgende stadia van de distributieketen. Horizontale samenwerking ontstaat tussen mogelijk concurrerende bedrijven die vergelijkbare activiteiten in verschillende distributieketens uitvoeren. Dit proefschrift presenteert theoretische modellen voor horizontale en verticale samenwerking in distributieketens met cross-docks en bestudeert oplossingsmethodieken waarmee de duurzaamheid van deze ketens kan worden verbeterd. Daarvoor worden concepten uit de vakgebieden informatiesystemen, Operations Research en Supply Chain Management gecombineerd. De in dit proefschrift beschreven classificatie van wiskundige cross-docking modellen onthult nieuwe onderzoeksvragen gericht op een betere afstemming tussen interne cross-dock processen en ketenlogistiek. Een simulatiestudie illustreert hoe geringe aanpassingen in de ketenlogistiek tot grote prestatieverbeteringen in het cross-dock leiden. Op het gebied van horizontale samenwerking is een methode ontwikkeld die de uitwisseling van ladingen tussen transporteurs systematiseerd. Een reeks casussen toont aan dat doorbraken in ICT ontwikkeling nodig zijn om samenwerkende transporteurs in staat te stellen gezamenlijk planningsbeslissingen te nemen

Managing Advanced Synchronization Aspects in Logistics Systems

In this thesis, we model various complex logistics problems and develop appropriate techniques to solve them. We improve industrial practices by introducing synchronized solutions to problems that were previously solved independently. The first part of this thesis focuses on cross-docks. We simultaneously optimize supplier orders and cross-docking operations to either reduce the storage space required or evenly distribute workload over the week. The second part of this thesis is devoted to transport problems in which two types of vehicles are synchronized, one of which can be transported by the other. The areas of application range from home services to parcel delivery to customers. After analyzing the complexity associated with these synchronized solutions (i.e., largescale problems for which the decisions depend on each other), we design algorithms based on the "destroy-and-repair" principle to find efficient solutions. We also introduce mathematical programs for all the considered problems. The problems under study arose directly from collaborations with various industrial partners. In this respect, our achieved solutions have been benchmarked with current industrial practice. Depending on the problem, we have been able to reduce the environmental impact generated by the industrial activities, the overall cost, or the social impact. The achieved gains compared to current industrial practice range from 10 to 70%, depending on the application. -- Dans cette thèse, nous modélisons divers problèmes logistiques complexes et développons des techniques appropriées pour les résoudre. Nous cherchons à améliorer certaines pratiques industrielles en introduisant des solutions synchronisées à des problèmes qui étaient auparavant résolus indépendamment. La première partie de cette thèse porte sur les cross-docks. Nous optimisons simultanément les commandes fournisseurs et les opérations au sein de la plateforme de logistique pour réduire l’espace de stockage requis ou répartir uniformément la charge de travail sur la semaine. La deuxième partie de cette thèse est consacrée aux problèmes de transport dans lesquels deux types de véhicules sont synchronisés, l’un pouvant être transporté par l’autre. Les domaines d’application vont du service à domicile à la livraison de colis chez des clients. Après avoir analysé la complexité des solutions synchronisées (c’est-à-dire des problèmes de grandes dimensions pour lesquels les décisions dépendent les unes des autres), nous concevons des algorithmes basés sur le principe de "destruction / reconstruction" pour trouver des solutions efficaces. Nous modélisons également les problèmes considérés avec la programmation mathématique. Les problèmes à l’étude viennent de collaborations avec divers partenaires industriels. A cet égard, les solutions que nous présentons sont comparées aux pratiques industrielles actuelles. En fonction du problème, nous avons pu réduire l’impact environnemental généré par les activités industrielles, le coût global, ou l’impact social des solutions. Les gains obtenus par rapport aux pratiques industrielles actuelles varient de 10 à 70%, selon l’application. Mot-clefs: Logistique, Synchronisation, Problème de transport, Tournée de véhicules, Plateforme de Cross-dock (transbordement), Programmation Mathématiques, Métaheuristiques, Matheuristiques, Instances Réelle