Multi-criteria robust design of a JIT-based cross-docking distribution center for an auto parts supply chain

We present a solution framework based on discrete-event simulation and enhanced robust design technique to address a multi-response optimization problem inherent in logistics management. The objective is to design a robust configuration for a cross-docking distribution center so that the system is insensitive to the disturbances of supply uncertainty, and provides steady parts supply to downstream assembly plants. In the proposed approach, we first construct a simulation model using factorial design and central composite design (CCD), and then identify the models that best describe the relationship between the simulation responses and system factors. We employ the response surface methodology (RSM) to identify factor levels that would maximize system potential.