Supply Chain Planning with Hybrid Cross-docks and Uncertain Demand

Our research is inspired by the subcontracting problem at a major oil field services company in North America. The company's supply chain consists of suppliers bringing raw materials Free Trade Zone (FTZ). FTZ serves as the stock consolidation point for the region. The company then breaks-bulk and ship materials to various plants using subcontractors (3PLs). Subcontractors charge by the weight of the shipping unit. The goal is to minimize the total inbound and outbound transportation costs and the total inventory management costs. The demand at each plant is stochastic. We derive theoretical solutions and perform robust optimization.

Supply Chain Planning with Hybrid Cross-docks and Uncertain Demand Presentation