Optimization of A Retail Cross-Dock Layout in JIT System Using Benders Decomposition Method

Warehouse, as the main link in any large and complex organization, establishes a direct relationship between different parts of the organization and the supply chain. Today, the warehouses are designed to be built in such a way that they can speed up various warehouse operations. Therefore, it is important to attempt to move toward the just-in-time system. Adaptation to this system requires distribution centers. One solution is to use a        cross-dock. In this article, the optimal retail cross-dock layout is investigated by considering distribution operations as JIT. Layout is defined as the allocation of warehouse floor space to retailers. In this regard clusters of the warehouse floor locations are considered to assign to different retailers. Each cluster includes a group of multiple neighboring floor locations that are adjacent to each other and placed one after the other. Products are picked up at the receiving docks and are transported along with the warehouse up to the location where the products for a given retailer are located. The purpose is to determine the allocation of warehouse floor locations to retailers to minimize the distance traveled in the warehouse. Different scenarios for layout of the warehouse have been studied and analyzed. An integer linear programming model is presented and the Benders decomposition method is also used to solve the problem and the results are presented. Finally, ideas and recommendations are presented to develop the model.