Robust Cross-dock Location Model Accounting for Demand Uncertainty

The objective of this thesis was to develop optimization models to locate cross-docks in supply chain networks. Cross-docks are a type of intermediate facility which aid in the consolidation of shipments, in which the goods spend little or no time in storage. Instead, the goods are quickly and efficiently moved from the inbound trucks to the outbound docks. Two deterministic facility location models were developed. One followed the p-median facility problem type, where only p facilities were opened in order to minimize total network costs. In the second model, as many cross-docks as necessary were opened and facility location costs were considered while minimizing total network costs. In order to account for uncertainty in demands, a robust optimization model was created based on the initial deterministic one. Robust counterparts were developed for each equation that contained the demand term. The robust model allowed for the creation of a network with the ability to handle variations in demand due to factors such as inclement weather, seasonal variations, and fuel prices. Numerical analysis was performed extensively on both the deterministic and robust models, following the p-median facility problem type, using three networks and parameters coherent with industry standards. The results showed that accounting for uncertainty in demands had a real effect on the facilities which were opened and total network costs. While the deterministic network was less expensive, it was unable to handle increases in demand due to uncertainty, whereas the robust network had no capacity shortages in any scenario. Simple demand inflation, along with the use of a robust model for baseline comparison, also proved to be a legitimate strategy to account for uncertainties in demand among small freight carriers.

Name thesis:degree_name

MS

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Civil and Environmental Engineering

Year dc:date.available

2013

Author dc:creator

• Spangler, Stephanie

Contributors dc:contributor

• Avinash Unnikrishnan
• Ronald W. Eck
• John P. Zaniewski

• Civil engineering
• Environmental engineering

Identifier

https://researchrepository.wvu.edu/etd/398

OAI identifier oai:identifier

oai:researchrepository.wvu.edu:etd-1401