Logistic models to minimize the material handling cost within a cross-dock
Taniya Mukherjee1,2, Isha Sangal1, Biswajit Sarkar3,4
1Department of Mathematics & Statistics, Banasthali Vidyapith, Banasthali, Rajasthan-304022, India.
Mathematical Biosciences and Engineering : MBE
|March 11, 2023
Summary
This study introduces a linear programming model for optimizing cross-docking operations. The model minimizes material handling costs by strategically assigning inbound goods to storage areas, proving direct transfers are economical.
Area of Science:
- Operations Research
- Supply Chain Management
- Logistics
Background:
- Retail supply chains aim for efficiency, speed, and cost-savings through strategies like cross-docking.
- Effective cross-docking relies on operational policies, such as door assignments and resource allocation.
- Optimizing material handling costs is crucial for successful cross-docking implementation.
Purpose of the Study:
- To propose a linear programming model for door-to-storage assignment in cross-docking.
- To minimize material handling costs within a cross-dock facility.
- To analyze the impact of various operational factors on cost optimization.
Main Methods:
- Development of a linear programming model focused on door-to-storage assignment.
- Optimization of product flow from inbound docks to storage zones based on demand frequency and loading sequence.
- Analysis of a numerical example with varying numbers of inbound trucks, doors, products, and storage areas.
Main Results:
- The proposed model effectively minimizes material handling costs.
- Cost savings are influenced by the number of inbound trucks, product quantity, and per-pallet handling prices.
- The number of material handling resources does not significantly impact the net material handling cost.
- Direct product transfer via cross-docking is confirmed as an economical strategy.
Conclusions:
- The linear programming model provides an effective approach to optimizing door-to-storage assignments in cross-docking.
- Strategic assignment of goods based on demand and loading sequence significantly reduces handling costs.
- Cross-docking's efficiency is enhanced by minimizing products held in storage, thereby lowering overall handling expenses.
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