Warehouse Operation Optimization - A Case Study Of Cross-Docking At Bicycles Company X

Abstract

Cross-docking is a logistics practice that has gained widespread adoption in warehouse operations internationally. It is particularly embraced by large retailers, distributors, and e-commerce companies seeking to optimize their supply chain efficiency and enhance operational performance. Nowadays, fast-paced business environment, where customers expect quick deliveries and seamless shopping experiences, cross-docking has become a critical component of supply chain management. So that, we have researched and improved the traditional warehouse model to a cross-docking model for Company X. We utilized a cross-docking model with flexible docks that handle both inbound and outbound trucks. A mathematical model using constraint programming was proposed to solve the optimal truck-to dock assignment problem. We used real data from the company on Monday, the busiest day of the week for the warehouse, to simulate and evaluate the company's operational performance. Additionally, we conducted a sensitivity analysis to evaluate the model and propose improvements to enhance service quality. The results indicate that the current warehouse is overloaded and requires an upgrade with additional inbound and outbound docks to handle the current volume. Finally, we analyzed the environmental, economic, and social impacts of implementing this model in practice.