Abstract
Improvements achieved by applying linear programming models in solving optimization problems in logistics cannot always be expressed by physically measurable values (dimensions), but in non-dimensional values. Therefore, it may be difficult to present the actual benefits of the improvements to the stake holders of the system being optimized. In this article, a possibility of applying simulation modelling in quantifying results of optimizing cross dock terminal gates allocation is outlined. Optimal solution is obtained on the linear programming model by using MS Excel spreadsheet optimizer, while the results are quantified on the simulation model, by using Rockwell Automation simulation software. Input data are collected from a freight forwarding company in Zagreb, specialized in groupage transport (Less Than Truckload - LTL).
Highlights
Because of the growing competition on the global market and more complex customers’ requirements, freight forwarding companies must constantly improve their operations and create competitive advantages in terms of timing, quality and cost
The results of the experiments enable comparing throughput time as the key performance indicator (KPI) which is required. This way, the simulation modelling enables quantifying the improvement of cross docking operations in physically measurable values, in case when the linear programming model objective function is expressed as a non-dimensional value
Optimal receiving gates allocation enables minimizing the quantity of goods moved and the distances passed by the forklifts in the XD terminal, reduces working hours and the duration of the cross docking operations
Summary
Because of the growing competition on the global market and more complex customers’ requirements, freight forwarding companies must constantly improve their operations and create competitive advantages in terms of timing, quality and cost. Handling of freight in a cross dock terminal is labour intensive, and workers must quickly transfer freight during a short time period [2] This is a typical optimization problem in logistics, which can be solved by methods of linear programming [3]. With the same input data are performed, first with the empirical solution the company normally use and the second with the optimized solution obtained from the linear programming model. The results of the experiments enable comparing throughput time (duration of cross docking operations) as the KPI which is required This way, the simulation modelling enables quantifying the improvement of cross docking operations in physically measurable values, in case when the linear programming model objective function is expressed as a non-dimensional value
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