Dynamic vs. Static Optimization of Crossdocking Operations1

To improve operations commonly found in today's crossdocks, we offer a door assignment optimization tool that will reduce the distance travelled by goods across the crossdock, as well as workload and labor cost. The cross dock door assignment problem (CDAP) minimizes total distance travelled by the goods inside the crossdock where door capacities are limited by the time they can be used in a work day. Experience shows that blindly following CDAP optimization results could negatively impact delivering goods efficiently. We therefore propose a dynamic assignment scheme in which door assignment is reconsidered whenever a new trailer arrives. Repeatedly updating and resolving for door assignments within a simulation experiment is made feasible through the use of our advanced MatHeuristic solver, CHH, and this permits us to compare the static and the dynamic assignments. Using simulation data based on data from an actual crossdock, we demonstrate the superiority of the dynamic approach in terms of operations efficiency and make managerial recommendations.