Optimizing cross docking operation: A case of DC Mega market at Gemadept logistics

Abstract

Cross-docking is a strategy which can help consolidate the goods in the supply chain and save costs by reducing the number of trucks. It is also a practice that helps to consolidate items in the supply chain while also saving money by minimizing the number of truck journeys. In the conventional model, inventory is maintained in warehouses until a client order is received, at which point it is chosen, packed, and shipped. When more orders come in, they are stored in the warehouse until the customer is found. The client is alerted in advance of the goods' arrival at the warehouse and lack of storage requirements under the Cross Docking technique. In this paper, I will improve a cross-docking operation mode in DC mega Market at GLC, which still has some limitations in the operation process. The goal of this thesis is to develop mathematical models that will optimize cross docking operations in Mega Market's distribution center and to find appropriate mathematical models for optimizing cross docking operation in Mega Market's distribution center. The problem is formulated as a constraint programming CP model to offer the optimal solution and provide feasible and realistic solutions. Finally, the solution is developed by solving CP model through CPLEX programming in accordance with the overarching goal and useful resources of distribution center case.