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A multi-stage stochastic model for designing a linked cross-docking distribution network with heterogeneous trucks

Author

Listed:
  • Saeid Nasrollahi

    (Yazd University)

  • Hasan Hosseini-Nasab

    (Yazd University)

  • Mohammad Bagher Fakhrzad

    (Yazd University)

  • Mahboobeh Honarvar

    (Yazd University)

Abstract

Designing an efficient supply chain network where supply capacity and demand change over periods has been a growing challenge for today’s transport systems. This paper addresses the problem of designing a three-echelon cross-docking distribution network with linked cross-docks to transport consolidated products by heterogeneous trucks under demand and supply capacity uncertainties. Two bi-objective multi-stage stochastic models are formulated to minimize the total costs of distribution network design and the total shortage of products. In model 1, homogeneous trucks and individual cross-docks are used without linking cross-docks, and in model 2, heterogeneous trucks with linking cross-docks are considered. The minimum deviation method is employed to unify the objective functions and obtain a single normalized objective function. Several simulated problems are solved by the branch and bound method to compare the proposed models. Results demonstrate that model 2 is more efficient than model 1 in designing a suitable cross-docking distribution network. Model 2 is then utilized to design an agri-food supply chain network in a real case study.

Suggested Citation

  • Saeid Nasrollahi & Hasan Hosseini-Nasab & Mohammad Bagher Fakhrzad & Mahboobeh Honarvar, 2023. "A multi-stage stochastic model for designing a linked cross-docking distribution network with heterogeneous trucks," Operational Research, Springer, vol. 23(1), pages 1-41, March.
    • Handle: RePEc:spr:operea:v:23:y:2023:i:1:d:10.1007_s12351-023-00762-0
    DOI: 10.1007/s12351-023-00762-0
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    References listed on IDEAS

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