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Vehicle routing with cross-docking

Author

Listed:
  • M Wen

    (Technical University of Denmark)

  • J Larsen

    (Technical University of Denmark)

  • J Clausen

    (Technical University of Denmark)

  • J-F Cordeau

    (HEC Montréal)

  • G Laporte

    (HEC Montréal)

Abstract

Over the past decade, cross-docking has emerged as an important material handling technology in transportation. A variation of the well-known Vehicle Routing Problem (VRP), the VRP with Cross-Docking (VRPCD) arises in a number of logistics planning contexts. This paper addresses the VRPCD, where a set of homogeneous vehicles are used to transport orders from the suppliers to the corresponding customers via a cross-dock. The orders can be consolidated at the cross-dock but cannot be stored for very long because the cross-dock does not have long-term inventory-holding capabilities. The objective of the VRPCD is to minimize the total travel time while respecting time window constraints at the nodes and a time horizon for the whole transportation operation. In this paper, a mixed integer programming formulation for the VRPCD is proposed. A tabu search heuristic is embedded within an adaptive memory procedure to solve the problem. The proposed algorithm is implemented and tested on data sets provided by the Danish consultancy Transvision, and involving up to 200 pairs of nodes. Experimental results show that this algorithm can produce high-quality solutions (less than 5% away from optimal solution values) within very short computational time.

Suggested Citation

  • M Wen & J Larsen & J Clausen & J-F Cordeau & G Laporte, 2009. "Vehicle routing with cross-docking," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(12), pages 1708-1718, December.
    • Handle: RePEc:pal:jorsoc:v:60:y:2009:i:12:d:10.1057_jors.2008.108
    DOI: 10.1057/jors.2008.108
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    References listed on IDEAS

    as
    1. Jayaraman, Vaidyanathan & Ross, Anthony, 2003. "A simulated annealing methodology to distribution network design and management," European Journal of Operational Research, Elsevier, vol. 144(3), pages 629-645, February.
    2. C S Sung & S H Song, 2003. "Integrated service network design for a cross-docking supply chain network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(12), pages 1283-1295, December.
    3. John J. Bartholdi & Kevin R. Gue, 2004. "The Best Shape for a Crossdock," Transportation Science, INFORMS, vol. 38(2), pages 235-244, May.
    4. J-F Cordeau & M Gendreau & G Laporte & J-Y Potvin & F Semet, 2002. "A guide to vehicle routing heuristics," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(5), pages 512-522, May.
    5. J-F Cordeau & G Laporte & A Mercier, 2001. "A unified tabu search heuristic for vehicle routing problems with time windows," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(8), pages 928-936, August.
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