Integrated service network design for a cross-docking supply chain network

Abstract

This paper considers an integrated service network design problem for a given set of freight demands that is concerned with integration of locating cross-docking (CD) centers and allocating vehicles for the associated direct (transportation) services from origin node to a CD center or from a CD center to the destination node. For the vehicle allocation, direct services (sub-routes) should be determined for the given freight demands, and then the vehicle allocation has to be made in consideration of routing for the associated direct service fulfillment subject to vehicle capacity and service time restriction. The problem is modeled as a path-based formulation for which a tabu-search-based solution algorithm is proposed. To guarantee the performance of the proposed solution algorithm, strong valid inequalities are derived based on the polyhedral characteristics of the problem domain and an efficient separation heuristic is derived for identifying any violated valid inequalities. Computational experiments are performed to test the performance of the proposed solution algorithm and also that of a valid-inequality separation algorithm, which finds that the solution algorithm works quite well and the separation algorithm provides strengthened lower bounds. Its immediate application may be made to strategic (integrated) service network designs and to tactical service network planning for the CD network.

A Multiperiod Vehicle Lease Planning for Urban Freight Consolidation Network

“…Problem P MVLPUC can be proven as NP-hard in a strong sense in the same manner as 4 Mathematical Problems in Engineering shown in Sung and Song [25]. Moreover, P MVLPUC considers time-varying demands, so it may be too complex to derive an exact algorithm to find optimal solutions even for small-sized problem instances.…”

“…Donaldson et al [24] considered a problem of allocating vehicles and making vehicle consolidation schedules. Sung and Song [25] and Sung and Yang [26] studied an integrated model of locating consolidation centers and allocating vehicles. All the works on a network level about consolidation based transportation have considered static freight demands, not varying with time.…”

Logistics Strategies to Facilitate Long-Distance Just-in-Time Supply Chain System

“…Cross-docking thus helps JIT participants overcome the bottlenecks resulted from complex allocation and assortment processes. Finally, equipped with cross-docking expertise, supply chain partners can have greater agility which substantiates the timely delivery in JIT strategy (Sung & Song, 2003).…”

A mathematical model for optimization of an integrated network logistic design

“…Sung & Song, 2003) to more complex models such as capacitated multistage or multi-commodity models (e.g. Tsiakis & Papageorgiou, 2008) and they are usually aimed at determining the cost minimizing or profit maximizing system design.…”