A possibilistic programming approach for the location problem of multiple cross-docks and vehicle routing scheduling under uncertainty

This article considers the design of cross-docking systems under uncertainty in a model that consists of two phases: (1) a strategic-based decision-making process for selecting the location of cross-docks to operate, and (2) an operational-based decision-making process for vehicle routing scheduling with multiple cross-docks. This logistic system contains three echelons, namely suppliers, cross-docks and retailers, in an uncertain environment. In the first phase, a new multi-period cross-dock location model is introduced to determine the minimum number of cross-docks among a set of location sites so that each retailer demand should be met. Then, in the second phase, a new vehicle routing scheduling model with multiple cross-docks is formulated in which each vehicle is able to pickup from or deliver to more than one supplier or retailer, and the pickup and delivery routes start and end at the corresponding cross-dock. This article is the first attempt to introduce an integrated model for cross-docking systems design under a fuzzy environment. To solve the presented two-phase mixed-integer programming (MIP) model, a new fuzzy mathematical programming-based possibilistic approach is used. Furthermore, experimental tests are carried out to demonstrate the effectiveness of the presented model. The computational results reveal the applicability and suitability of the developed fuzzy possibilistic two-phase model in a variety of problems in the domain of cross-docking systems.