Mathematical models and meta heuristic algorithms for cross dock transportation problem associated with fixed charge

Abstract

Cross docking is a distribution method in which products are unloaded from incoming newlinetrucks and loaded onto outgoing trucks with a little or no storage in between. Cross newlinedocking leads to shipment consolidation, reduction in lead time/costs and greater newlinecustomer satisfaction. The traditional Cross Dock Transportation Problem (CDTP) newlineinvolves determining the best method of loading and routing the vehicles in a cross dock newlinesystem. In practice, fixed costs such as vehicle rent, highway toll charges, landing fee in newlinean airport, vehicle parking fee, etc., are also incurred while establishing a transport route newlinebetween a supplier and a customer directly or via a cross dock. The CDTP becomes a newlinefixed charge cross dock transportation problem (FCCDTP) when the fixed costs of newlinetransportation are considered in addition to the variable costs of transportation. Further, newlinein real-world scenarios, a supplier may supply a unique product or a variety of products. newlineThe traditional cross dock transportation problems have focused on the minimization of newlinethe economic cost without considering the vehicle emissions. The growing urge for newlinesustainable transportation policy motivates researchers and practitioners in supply chain newlinemanagement to address the environmental aspects. newline newlineThe present research focuses on developing mathematical models and meta- newlineheuristic algorithms for cross dock transportation problems associated with fixed charge. newline newlineThe research is divided into four phases. In the first phase, a fixed charge cross dock newlinetransportation model is formulated and solved for the real-life situation wherein each newlinesupplier supplies a unique product to retailers via cross docks. The fixed charge cross newlinedock transportation model has been formulated as a mixed integer programming model newlineand solved using the mathematical programming software LINGO for smaller-size newlineproblems. newline