An exact algorithm for a cross-docking supply chain network design problem

• Published in: The Journal of the Operational Research Society Vol. 59; no. 1; pp. 119 - 136
• Main Authors: Sung, C S, Yang, W
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis 01.01.2008; Palgrave Macmillan Press; Palgrave Macmillan UK; Palgrave; Taylor & Francis Ltd
• Subjects: Algorithms; Applied sciences; Business and Management; Cross docking; Direct service costs; Exact sciences and technology; Firm modelling; Flows in networks. Combinatorial problems; Freight; Heuristic; Heuristics; integer programming; Logistics; Management; networks and graphs; Operational research and scientific management; Operational research. Management science; Operations research; Operations Research/Decision Theory; Optimal solutions; Performance evaluation; Shipping; Studies; Supply chain management; Supply chains; Theoretical Paper; Theoretical Papers; Transportation demand; Transportation services; Variable costs; Vehicle capacity; Vehicles; networks and graphs; integer programming; logistics; Branching; Local search; Distribution cost; Set partitioning; Combinatorial optimization; Delivery lead time; Integer programming; Service time; Neighborhood search; Heuristic method; Network; Set theory; Logistics
• ISSN: 0160-5682; 1476-9360
• DOI: 10.1057/palgrave.jors.2602328

This paper proposes a branch-and-price algorithm as an exact algorithm for the cross-docking supply chain network design problem introduced by one of the authors of this paper. The objective is to optimally locate cross-docking (CD) centres and allocate vehicles for direct transportation services from the associated origin node to the associated CD centre or from the associated CD centre to the associated destination node so as to satisfy a given set of freight demands at minimum cost subject to the associated service (delivery) time restriction. A set-partitioning-based formulation is derived for the problem for which some solution properties are characterized. Based on the properties, a branch-and-price algorithm is derived. The properties can also be used in deriving any efficient local search heuristics with the move operation (neighbourhood search operation) of modifying assignment of some freight demands from current CD centres to other CD centres. Computational experiments show that the branch-and-price algorithm is effective and efficient and also that the solution properties contribute to improve the efficiency of the local search heuristics.