A Multi-Objective Model in Cross Docks Location Problems Considering Data Envelopment Analysis

Background/Objectives: This paper deals with a cross docking distribution strategy where the system consists of O suppliers, J potential location for cross docks and K retailers. In addition all vehicles are equal. Methods/Statistical Analysis: To find an effective policy for this system, a mathematical multi-objective model with aim to minimizing the travelled distance costs between origins and facilities and also between facilities and destinations, minimizing the fixed cost of constructing a cross-dock and maximizing the benefits of being close to the facilities is formulated. Findings: The previous models for problem at hand don’t consider cross docks location technical efficiency so it may led to selecting inappropriate sites. To deal with this dilemma, data envelopment analysis approach added to model as a new objective function and several constraints makes the model more applicable to real-world systems. The mathematical model of this problem belongs to nonlinear mixed integer-programming and hence a parameter-tuned simulated annealing is proposed to solve it efficiently. The results of solving numerical examples show the applicability of the proposed methodology clearly. Application/Improvements: Because of considering technical efficiency for each dock, mathematical model is closer and more applicable to real-world environments than the other existing ones.