Multi-period distribution networks with purchase commitment contractsMulti-Period Distribution Networks With Purchase Commitment Contracts • July 1st, 2023
Contract Type FiledJuly 1st, 2023Abstract. Retailers which deliver products directly to their customer locations often rely on Logistics Service Intermediaries (LSI) for order management, warehousing, transportation and distribution services. Usually, the LSI acts as a shipper and subcontracts the transportation to carriers for long- haul and last-mile delivery services. All agents interact and are connected through cross-docking facilities. As the demand from customers may vary significantly over time, the shipper’s requirements for transportation evolve accordingly at the tactical level. This creates opportunities for the shipper to take advantage of medium-term contracts with the carriers at prices lower than those offered by the spot market. The study focuses on the tactical design, through dynamic contracts, of a suitable network of cross-docking facilities and related transportation capacities (belonging to different carriers) to reduce the shipper’s operational costs. In this article, we propose an MILP formula
Multi-period distribution networks with purchase commitment contractsMulti-Period Distribution Networks With Purchase Commitment Contracts • May 18th, 2022
Contract Type FiledMay 18th, 2022Abstract. Retailers which deliver products directly to their customer locations often rely on Logistics Service Intermediaries (LSI) for order management, warehousing, transportation and distribution services. Usually, the LSI acts as a shipper and subcontracts the transportation to carriers for long- haul and last-mile delivery services. All agents interact and are connected through cross-docking facilities. As the demand from customers may vary significantly over time, the shipper’s requirements for transportation evolve accordingly at the tactical level. This creates opportunities for the LSI to take advantage of medium-term contracts with the carriers at prices lower than those offered by the spot market. In this article, we propose a MILP formulation for the multi-period planning problem with minimum purchase commitment contracts faced by the LSI. The study focuses on designing dynamically, at a tactical level, a suitable network of cross-docking facilities and related transportat