A developed nonlinear model for cross-docking supply chain network design with possibility of linking between cross-docks

This paper studies location-allocation and transportation problem in cross-docking distribution networks that consists of suppliers, cross-docks and plants. A developed mixed-integer nonlinear model is proposed for a post-distribution cross-docking strategy with multi cross-docks and products that cross-docks can be connected. The objective function is to minimize the total cost comprising the cost of established cross-docks and transportation cost. For obtaining this model, at first two models are introduced and compared with each other by solving five short simulated problems (basic nonlinear model 1 and nonlinear model 2 with the possibility of connections between cross-docks). Results indicate that the total cost is decreased when the connection between cross-docks exists. So, model 2 is more efficient and suitable than the basic model. Then, in the following, consolidation of plant orders is added to model 2 and the developed model is formulated. Finally, some problems with different sizes are generated randomly and solved by GAMS software. Computational results show that the developed model is suitable to solve the location-allocation and transportation problem in cross-docking distribution networks.