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An optimization model for collaborative logistics among carriers in vehicle routing problems with cross-docking

Vahid Ghomi (The Pennsylvania State University Mont Alto, Mont Alto, Pennsylvania, USA)
David Gligor (University of North Texas, Denton, Texas, USA)
Sina Shokoohyar (Department of Computing and Decision Sciences, Seton Hall University, South Orange, New Jersey, USA)
Reza Alikhani (Montpellier Business School, Montpellier, France)
Farnaz Ghazi Nezami (Kettering University, Flint, Michigan, USA)

The International Journal of Logistics Management

ISSN: 0957-4093

Article publication date: 20 January 2023

Issue publication date: 1 December 2023

529

Abstract

Purpose

Collaborative Logistics (CL) and merging operations are crucial strategies for reducing costs and improving service in transportation companies. This study proposes a model for optimizing efficiency in supply chain networks through inbound and outbound Collaborative Logistics implementation among the carriers in centralized, coordinated networks with cross-docking.

Design/methodology/approach

A mixed-integer non-linear programming model is developed to determine the optimal truck-goods assignment while gaining economies of scale through mixing multiple less-than-truckload (LTL) products with different weight-to-volume ratios. Unlike the previous studies that have considered Collaborative Logistics from the cost and profit-sharing perspective, the proposed model seeks to determine an appropriate form of Collaborative Logistics in the VRP.

Findings

This article shows that in a three-echelon supply chain consisting of a set of suppliers, a set of customers and a cross-docking terminal, partial collaboration among the inbound carriers and outbound carriers outperforms no/complete collaboration. This approach enhances the supply chain efficiency by minimizing the total transportation costs, the total transportation miles and the total number of trucks and maximizing fleet utilization. While addressing the four points, the role of collaborative logistics among the carriers was discussed. In a three-echelon SC consisting of a set of suppliers, a set of customers and a cross-docking terminal, partial collaboration among the inbound carriers and outbound carriers outperforms no/complete collaboration. Using a combination of experimental analysis and optimization process, it was recommended that managers be cautious that too much (full or complete) or no collaboration can result in SC performance deterioration.

Originality/value

The suggested approach enhances the supply chain efficiency by minimizing the total transportation costs, the total transportation miles and the total number of trucks and maximizing fleet utilization. While addressing the four points, the role of Collaborative Logistics among the carriers was discussed.

Keywords

Citation

Ghomi, V., Gligor, D., Shokoohyar, S., Alikhani, R. and Ghazi Nezami, F. (2023), "An optimization model for collaborative logistics among carriers in vehicle routing problems with cross-docking", The International Journal of Logistics Management, Vol. 34 No. 6, pp. 1700-1735. https://doi.org/10.1108/IJLM-11-2021-0515

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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