An Innovative Approach to Optimize Inbound Delivery Scheduling at Distribution Centers

Abstract

Distribution centers (DCs) run more efficiently if their inbound deliveries are spread out evenly over the days of the week so that volume is aligned with receiving capacity. However, delivery dates are often scheduled at the time of placing purchase orders without an efficient process for spreading deliveries evenly, and there has been little research on how to optimally do this. This paper terms this process Master Purchase Receipt Scheduling (MPRS) and introduces a novel MPRS algorithm developed by New Horizon Soft, LLC using data from a major U.S. restaurant chain, where the algorithm is now in use. The approach optimizes order delivery dates, accounting for vendor shipping calendars, shipment sizes, and transportation uncertainty. Results from a Monte Carlo simulation validate the effectiveness and robustness of the algorithm. By addressing the complexities of DC operations, this innovation promises to reduce receiving bottlenecks, increase efficiency and capacity utilization, and foster additional research in this vital area.