Lagrangian relaxation for distribution networks with cross-docking centre

Abstract

This paper proposes a cross-docking in logistics network that aims to reduce the transportation costs. The proposed strategy eliminates need of inventory for storing commodities. It consists of two main stages. During first echelon, the number and location of cross-dock warehouses are determined. In second echelon, the allocation of warehouse as cross-dock to distribution centres is determined. Each warehouse has limited capacity and distribution centre can supplied by only one cross-dock. In this paper, the problem is mathematical formulated using a mixed-integer programming model. This formulation is used the concept of cross-docking allocation and commodities distribution. The Lagrangian relaxation approach is proposed to solve logistics network problem. Experimental results reveal that the proposed approach provides optimal solution in a reasonable time.