Optimal Product Allocation for Crossdocking and Warehousing Operations in FMCG Supply Chain

Many companies search for efficient distribution alternatives, as the lead times for customer order-fulfillment need to be shortened while the costs and risks of warehousing need to be minimized. Crossdocking is an operation strategy that moves items through flow consolidation centers or cross docks without putting them into storage. A distribution center normally is a combination of crossdocking and warehousing facilities. The operator of the center needs to be clear on what products or even how many percent of a type of product should go through by crossdocking. Industry needs guideline and model to support crossdocking/warehousing decision-making and produce alternative plan for allocating products to crossdocking and warehousing operations. This paper presents a systematic procedure and model for evaluating crossdocking distribution in a company. A prototype system based on the approach is discussed and testing analysis is given in the paper.