Auction based algorithm for solving scheduling problem in cross-docking centres.

Abstract

A cross-docking centre reduces the amount of storage and transportation in a distribution system compared to an ordinary warehouse. This paper proposes an auction-based mechanism for optimum scheduling of inbound trucks in cross-docking centres, thereby reducing the storage and transportation costs. Auction mechanisms are commonly used in different real life applications for better allocation of limited resources. Here, an effort is made to integrate the auction mechanism with the functioning of cross-docking centres. A mathematical model is developed for the optimal scheduling of inbound trucks. As expected, the determination of exact schedule for problems involving large number of variables was found to be computationally complex, and hence a heuristic methodology is also proposed in this study. In our computational experiments, we found that the proposed heuristic method is capable of producing good schedules in minimal time.