A hub-and-spoke architecture for a parcel delivery system using the cross-docking distribution strategy

Abstract

This article develops a hub-and-spoke architecture for a parcel delivery system using a network that includes a distribution centre and several cross-dock facilities. Several real-world assumptions, including an electric truck fleet, mobile charging station, third-party logistics, capacity constraints, last-mile deliveries and customer dissatisfaction, are incorporated in this problem. Besides, because of the high complexity of the problem, a novel matheuristic algorithm based on the combination of the fix-and-relax algorithm (FARA) and genetic algorithm (GA), namely Mb-FARGA, is developed to solve large-sized instances. A comprehensive computational analysis is accomplished to validate the proposed mathematical models and evaluate the performance of the Mb-FARGA method. According to the results, the Mb-FARGA method demonstrates a very favourable performance. Moreover, the results show that considering a distribution centre with appropriate capacity in the cross-docking system is an excellent strategy to enhance customer satisfaction, improve the system’s performance and reduce capacity shortages.

KEYWORDS:

• Multiple cross-docking
• multi-period cross-docking
• electric trucks
• hub-and-spoke architecture
• matheuristic algorithm

Disclosure statement

No potential conflict of interest was reported by the authors.