OPTIMAL DESIGN OF MERGE-IN-TRANSIT DISTRIBUTION NETWORKS

Merge-in-transit operations work as follows: A carrier picks up separate loads from two or more different warehouses, transports the loads to a location near their final destination, and then performs a "merge" operation. At the simplest, the merge operation comprises consolidating the loads in a cross-dock operation. In more complex systems, the merge operation comprises consolidation and a value-added process such as assembly. The report develops a simple optimization model and Geographic Information System (GIS) based decision support system for determining the number (if any) and location of merge points in a distribution network and determining whether such merge points should perform additional value-added steps such as assembly.