Vehicle routing scheduling for cross-docking in the supply chain

Abstract

One of the most important factors in implementing supply chain management is to efficiently control the physical flow of the supply chain. Due to its importance, many companies are trying to develop efficient methods to increase customer satisfaction and reduce costs. In various methods, cross-docking is considered a good method to reduce inventory and improve responsiveness to various customer demands. However, previous studies have dealt mostly with the conceptual advantages of cross-docking or actual issues from the strategic viewpoint. It is also necessary, however, to considering cross-docking from an operational viewpoint in order to find the optimal vehicle routing schedule. Thus, an integrated model considering both cross-docking and vehicle routing scheduling is treated in this study. Since this problem is known as NP-hard, a heuristic algorithm based on a tabu search algorithm is proposed. In the numerical example, our proposed algorithm found a good solution whose average percentage error was less than 5% within a reasonable amount of time. (c) 2006 Elsevier Ltd. All rights reserved.