Scheduling incoming and outgoing trucks at cross docking terminals to minimize the storage cost

At cross docking terminals, products from incoming trucks are sorted according to their destinations and transferred to outgoing trucks using a small temporary storage. Such terminals allow companies to reduce storage and transportation costs in a supply chain. This paper focuses on the operational activities at cross docking terminals. We consider the trucks scheduling problem with the objective to minimise the storage usage during the product transfer. We show that a simplification of this NP-hard problem in which the departure sequences of incoming and outgoing trucks are fixed is polynomially solvable and propose a dynamic programming algorithm for it. The results of numerical tests of the algorithm on randomly generated instances are also presented

Implementing cross-docking facilities within a third-party logistics provider

Abstract: Cross-docking implementation within Third-Party Logistics Providers has increased over the past decade, especially in retail industries due to benefits such as lower inventory carrying cost, increased service levels, fewer overstocks, and reduced labour costs. The research presented in this dissertation investigates the impact of implementing crossdocking warehouses at Imperial Cold Logistics, which is currently known as Imperial Consumer Packaged Goods (Cold). Furthermore, this study aims to fill in the knowledge and data gap in the extant literature on cross-docking, as that is necessary in understanding the impact of cross-docking warehouses within a South African context. This study employs a single case study data collection methodology, to explore crossdocking within the context of a company that experienced a complex problem. Secondary data was sourced from the company in addition to a literature review, while the primary data was collected through semi-structured interviews. This study focused on the distribution centres located in Bloemfontein and Polokwane, as these are the distribution centres were changed into cross-dock warehouses. This study compares the differences between stock-holding sites and cross-docking sites, and investigates the impacts and benefits thereof. From the findings, it may be argued that the main reason why the two distribution centres were changed into cross-dock warehouses was that they were facing space constraints, in addition to the company’s management’s unwillingness to acquire additional warehouses or enlarging the area of the current warehouses...M.Com. (Business Management

Scheduling Material Handling in Cross-Docking Terminals

RÉSUMÉ : La manutention au sein des plateformes de distribution est un problème d’ordonnancement. Le transport interne des produits doit en effet être synchronisé avec les arrivées et les départs des camions. Ce problème se retrouve dans toutes les plateformes de distribution où la manipulation des produits est effectuée manuellement par l’opérateur. Dans cette thèse, nous investiguons ce problème d’ordonnancement dans les plateformes de distribution. Nous mettons en relief les différentes facettes de ce problème et proposons une classification de ses différents sous problèmes. De manière générale, l'objectif est d'éviter les doubles manipulations (déplacer un produit d’un camion vers le stock, puis du stock vers un camion) qui doublent les coûts sans valeur ajoutée. Il faut minimiser ces doubles manipulations en orchestrant les transferts internes et la séquence de chargement/ déchargement des camions. Dans une première partie, nous analysons la structure du problème avec un modèle simplifié n’ayant qu’un quai de réception et un quai d’envois. Nous formalisons les décisions de manipulation interne et développons un algorithme optimal pour déterminer le meilleur plan de transfert de produits lorsque la séquence des camions est connue. Cet algorithme est utilisé comme fonction d’évaluation dans une recherche stochastique pour minimiser les doubles manipulations et optimisant les séquences de chargement/déchargement. Nous présentons ensuite un modèle de programmation linéaire en nombres entiers du problème général (ordonnancement des arrivées et départs de camions et transfert interne des produits). Nous proposons un algorithme de séparation et d’évaluation permettant une résolution efficace du problème. Nous proposons des structures de dominance et quelques inégalités valides permettant d’améliorer les performances de l’algorithme. Cette approche nous permet de résoudre à l’optimum en un temps raisonnable de très gros problèmes. Dans une seconde partie, nous étendons ces modèles au problème général avec plusieurs quais. Nous nous intéressons d’abord au terminal de type satellite où l’ordonnancement des camions d’entrée est connu. Ces plateformes opèrent en deux mouvements différents : l’ordonnancement et chargement pour le transport de nuit et celui pour les livraisons matinales. Nous donnons une représentation mathématique qui permet de résoudre les problèmes de petite taille. Pour ceux de plus grandes ampleurs, nous utilisons une heuristique. Les résultats numériques montrent la validité de cette approche. Finalement, nous généralisons le type de plateforme (les séquences d’arrivée et de départ sont à déterminer) et développons un nouveau modèle d’ordonnancement plus compact. Nous utilisons pour les grandes instances une recherche par voisinage. Nous mettons en place des voisinages originaux adaptés à ce type d’ordonnancement. Mots clés: Transfert de produits, ordonnancement, plateforme de transbordement, recherche stochastique, programmation à nombres entiers, heuristiques, recherche du plus proche voisin.----------ABSTRACT : Material handling in cross-dock is a relevant class of scheduling problems in distribution centers in which inner transhipment decisions need to be considered in addition to the processing order of trucks. The problem has applications in distribution centers where operators manually perform internal transhipment. In this dissertation, we investigate the problem of material handling inside cross-docking terminals. The main component of the problem is presented, followed by a classification scheme to express its diversity. Moreover, double handling identifies the main source of deficiencies in transferring operations. The objective is to synchronize the trucks’ loading and unloading sequences with internal transferring decisions to minimize excessive product displacement inside the terminal. First, the problem is studied for a conceptual model of the platform with single receiving and shipping doors. We formalize decisions on internal transhipment and develop an algorithm to determine the best transferring plan with restricted orders on processing trucks. This algorithm is employed as an evaluation function in a stochastic search framework to ameliorate the order of processing trucks and reduce the cost of double handling. Then, a mixed integer linear programming formulation of the general problem is introduced. The proposed model determines the joint schedule between processing order of trucks at inbound and outbound doors with an internal transhipment plan. A path branching algorithm is proposed. We present several structural properties and some valid inequalities to enhance the performance of the algorithm. This method could solve fairly large instances within a reasonable time. Second, we extend the developed models and approaches to schedule material handling process for a real platform with multiple doors. In the first installment, we focus on the satellite cross-docks that have limitations on the processing order of trucks at inbound door. These platforms operate in two separate shifts: consolidating pickup freight for overnight shipments and processing received products for early morning deliveries. A mathematical formulation of the problem is presented that can solve small instances with commercial software. In addition, a sequential priority-based heuristic is introduced to tackle the large problems. Numerical results depict the stability of this approach. Finally, in the second instalment, we study the general model with no restriction on the arrival and departure pattern of trucks and formulate a new mathematical model. This model has considerably fewer variables and constraints than the previous one. Moreover, a variable neighborhood search heuristic is developed to tackle real life problems. This method consists of several operators incorporated in a search subroutine to find local optima and a perturbation operator to alter it. The developed method is adopted for three scenarios concerning limitations imposed by the network schedule. The analyzes demonstrate economical savings in the cost of material handling. Keywords: Material handling; scheduling; cross-dock; stochastic search; Integer programming; heuristic; variable neighborhood search

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