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Supply chain planning: A case for Hybrid Cross-Docks

Manoj Vanajakumari, Haoying Sun, Ashley Jones and Chelliah Sriskandarajah

Omega, 2022, vol. 108, issue C

Abstract: This research studies the logistics and inventory planning problem encountered at an oilfield services company whose supply chain consists of suppliers, a Hybrid Cross-Dock (HCD) facility, and production facilities. The HCD provides an option for the company to store inventory for a period of time without incurring inventory holding costs. This research aims to provide solutions that minimizes the total logistics and inventory-related costs, and obtain several managerial insights. The investigation into the computational complexity shows that the problem is NP-hard. Hence, an efficient bin-packing based heuristic is developed to provide good solutions. Furthermore, to account for the demand uncertainty, we develop an effective rolling horizon operating policy. Besides the proposed heuristics, the research also provides insights into the effects of free storage time at the HCD, which can guide the managers in their interactions and negotiations with an HCD operator. We also show that the length of free storage time at the HCD affects the outbound shipment sizes.

Keywords: Integrated supply chain; Cross-docking; Oilfield services industry; Rolling horizon problem; Hybrid Cross-Docking (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.omega.2021.102585

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