Vehicle routing problem in a kanban controlled supply chain system considering cross-docking strategy
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Vehicle routing problem in a kanban controlled supply chain system considering cross‑docking strategy Asefeh Hasani Goodarzi1 · Seyed Hessameddin Zegordi1 Received: 23 September 2017 / Revised: 19 July 2018 / Accepted: 16 August 2018 © Springer-Verlag GmbH Germany, part of Springer Nature 2018
Abstract This paper considers an inventory-routing problem in a distribution network in which kanban is used as a means to implement just-in-time strategy. There are a set of part suppliers and cross-docks in this network, which provide parts for an assembly plant. A novel mixed integer non-linear programming formulation is developed for the problem in which the optimum number of kanbans is determined considering inventory and transportation cost. In the other word, this research aims at reducing the level of inventory and transportation cost in a kanban controlled supply chain system, in which the number of kanbans is to be determined optimally considering demand from suppliers and geographical distribution of them. A fleet of vehicles is applied to transport kanbans from suppliers to the assembly plant via two transportation strategies: direct shipment and shipment through cross-docks (indirect shipment). In the second strategy, it is possible to have routes between suppliers. The proposed problem is NP-hard based on literature, thus a memetic algorithm is introduced to solve it. Solving several examples reveals that the solving method significantly outperforms GAMS/CPLEX in reducing objective value and computational time. Keywords Just-in-time · Kanban · Cross-docking · Direct shipment · Mixed integer non-linear programming
* Seyed Hessameddin Zegordi [email protected] Asefeh Hasani Goodarzi [email protected] 1
Faculty of Industrial and Systems Engineering, Tarbiat Modares University, P.O. Box 14115‑143, Tehran, Iran
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A. Hasani Goodarzi, S. H. Zegordi
1 Introduction In recent years, companies world-wide need to find new ways in order to reduce costs, increase productivity, improve quality of products, and meet the various demands of customers. A solution to these challenges is just-in-time (JIT) manufacturing strategy, in which a vast range of managerial and operational functions of a company are involved. These functions contain manufacturing, engineering design, marketing, purchasing, stock control, quality assurance, demand management and even human resources management (Sultana and Ahmed 2014). A manufacturing company should deal with these areas effectively in order to implement just-in-time strategy and achieve its goals including increasing the efficiency of production, reducing level of inventory, wasted materials, labor and time involved in the production process and finally improving customer service. The main objective of just-in-time is to minimize transportation and inventory costs while delivering parts frequently and in small quantities. Frequent deliveries would be made in less than truckload (LTL) shipments that result in a considerable transportation cost. A
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