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Impact of cross-docking on inventory in a decentralized retail supply chain

Author

Listed:
  • Waller, Matthew A.
  • Cassady, C. Richard
  • Ozment, John

Abstract

Cross-docking can reduce inventory in a retail supply chain but in certain situations it can result in more inventory being required in the stores to achieve the same customer service levels. In this paper we develop models to predict the changes in the retailer's system-wide inventory levels as a result of cross-docking, an important factor managers must consider when making decisions about cross-docking. We also examine the impact of a number of relevant parameters on the benefit of cross-docking.

Suggested Citation

  • Waller, Matthew A. & Cassady, C. Richard & Ozment, John, 2006. "Impact of cross-docking on inventory in a decentralized retail supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(5), pages 359-382, September.
    • Handle: RePEc:eee:transe:v:42:y:2006:i:5:p:359-382
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    Citations

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    Cited by:

    1. Sara Martins & Pedro Amorim & Bernardo Almada-Lobo, 2018. "Delivery mode planning for distribution to brick-and-mortar retail stores: discussion and literature review," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 785-812, December.
    2. Konur, Dinçer & Geunes, Joseph, 2016. "Supplier wholesale pricing for a retail chain: Implications of centralized vs. decentralized retailing and procurement under quantity competition," Omega, Elsevier, vol. 65(C), pages 98-110.
    3. İlker Küçükoğlu & Nursel Öztürk, 2017. "Two-stage optimisation method for material flow and allocation management in cross-docking networks," International Journal of Production Research, Taylor & Francis Journals, vol. 55(2), pages 410-429, January.
    4. 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.
    5. Van Belle, Jan & Valckenaers, Paul & Cattrysse, Dirk, 2012. "Cross-docking: State of the art," Omega, Elsevier, vol. 40(6), pages 827-846.
    6. Konur, Dinçer & Golias, Mihalis M., 2013. "Cost-stable truck scheduling at a cross-dock facility with unknown truck arrivals: A meta-heuristic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 71-91.
    7. Gebennini, Elisa & Grassi, Andrea & Rimini, Bianca & Depietri, Eleonora, 2013. "Costs and opportunities of moving picking activities upstream in distribution networks: A case study from the beverage industry," International Journal of Production Economics, Elsevier, vol. 143(2), pages 342-348.
    8. Hsieh, Chung-Chi & Liu, Yu-Te & Wang, Wei-Ming, 2010. "Coordinating ordering and pricing decisions in a two-stage distribution system with price-sensitive demand through short-term discounting," European Journal of Operational Research, Elsevier, vol. 207(1), pages 142-151, November.

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