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Pre-distribution vs. post-distribution for cross-docking with transshipments

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  • Tang, Shao-Long
  • Yan, Hong

Abstract

Cross-docking operation is a logistics service mode aims to remove the storage and picking up functions of a warehouse, and coordinate goods loading between delivery vehicles and shipping vehicles. Transshipment is another logistic technique that allows goods to be conveyed from an overstocked store to a nearby understocked store, to avoid backordering or loss of sale. This paper models and analyzes two typical cross-docking operations: pre-distribution cross-docking operations (Pre-C) and post-distribution cross-docking operations (Post-C) when transshipments among retail stores are applied. The different operational performances are investigated and compared. The analytical results show that, considering the inventory cost, transshipment cost and operations cost at the cross-dock, the suitability of Pre-C and Post-C are highly sensitive to operations environment factors such as the uncertainty of demand, the unit operations cost at the cross-dock, and the unit inventory holding and shortage cost.

Suggested Citation

  • Tang, Shao-Long & Yan, Hong, 2010. "Pre-distribution vs. post-distribution for cross-docking with transshipments," Omega, Elsevier, vol. 38(3-4), pages 192-202, June.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:3-4:p:192-202
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    3. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
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    5. Ellegood, William A. & Solomon, Stanislaus & North, Jeremy & Campbell, James F., 2020. "School bus routing problem: Contemporary trends and research directions," Omega, Elsevier, vol. 95(C).
    6. Dehghani, Maryam & Abbasi, Babak & Oliveira, Fabricio, 2021. "Proactive transshipment in the blood supply chain: A stochastic programming approach," Omega, Elsevier, vol. 98(C).
    7. Maria Isabel Pedro & Felipe Lopes Cabral, 2013. "A New Innovative Model Using RFID: A System Design and Its Implementation," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(2), pages 508-508.
    8. H. Khorshidian & M. Akbarpour Shirazi & S. M. T. Fatemi Ghomi, 2019. "An intelligent truck scheduling and transportation planning optimization model for product portfolio in a cross-dock," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 163-184, January.
    9. Lee, Chungseung & Park, Kun Soo, 2016. "Inventory and transshipment decisions in the rationing game under capacity uncertainty," Omega, Elsevier, vol. 65(C), pages 82-97.
    10. Van Belle, Jan & Valckenaers, Paul & Cattrysse, Dirk, 2012. "Cross-docking: State of the art," Omega, Elsevier, vol. 40(6), pages 827-846.
    11. Ma, Hong & Miao, Zhaowei & Lim, Andrew & Rodrigues, Brian, 2011. "Crossdocking distribution networks with setup cost and time window constraint," Omega, Elsevier, vol. 39(1), pages 64-72, January.
    12. Yu, Dennis Z. & Tang, Sammi Y. & Niederhoff, Julie, 2011. "On the benefits of operational flexibility in a distribution network with transshipment," Omega, Elsevier, vol. 39(3), pages 350-361, June.
    13. Vincent F. Yu & Parida Jewpanya & Voratas Kachitvichyanukul, 2016. "Particle swarm optimization for the multi-period cross-docking distribution problem with time windows," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 509-525, January.
    14. Ladier, Anne-Laure & Alpan, Gülgün, 2016. "Cross-docking operations: Current research versus industry practice," Omega, Elsevier, vol. 62(C), pages 145-162.

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