Supplier Selection Problem in Cross Docking Cold Chain

Open Access
Yu, Mengyi
Graduate Program:
Industrial Engineering
Master of Science
Document Type:
Master Thesis
Date of Defense:
Committee Members:
  • Vittaldas V Prabhu, Thesis Advisor
  • Supplier Selection
  • Cold Chain
  • Cross Docking
Cross docking is an integrated warehouse where incoming freights are directly loaded onto outbound trucks. It has been widely used in the retail industry to reduce supply chain costs. Every retailer wants to sell relatively high quality products while reduce the operation costs to the minimum. In recent years, the purchasing function has assumed to take larger proportion of the contribution to the supply chain, and one of the most important purchasing functions is the selection of the suppliers. The supplier selection problem could be solved in two phases. The first phase is to reduce the large amount of candidate suppliers to a relatively manageable small size. The second phase is to form a multiple criteria optimization model to allocate order quantities among the shortlisted suppliers. This thesis examines the strategy of supplier selection in a cross docking cold chain. Buyers usually do not consider from this perspective, but this method may help them to save extra money. In the first phase, Borda Count, L_∞ Norm, and Analytical Hierarchy Process (AHP) have been used to reduce the original suppliers. An optimization model has been stated in the second phase to determine which supplier to choose from the reduced suppliers selected in the first phase. And the two-phase supplier selection method has been performed in an example. The sensitivity analysis of the example showed that the order allocation among the suppliers would not change when we varied the inbound shipment capacity.