The percentage of 3PL (Third-party Logistics), which uses third party businesses to outsource elements of the company's distribution and fulfillment services, is increasing steadily. To provide 3PL service to the customers, it is needed to estimate the total transportation cost and propose the unit cost to the customers. In this paper, we develop a decision support system for estimation of transportation cost of 3PL provider considering various transportation services, such as direct transportation, multi point visiting transportation, and cross docking. The system supports route planning of vehicles by using algorithms based on tabu search and dynamic programming.
KSP Keywords
Cross docking, Tabu search, Third-party logistics, Total transportation cost, decision support system(DSS), dynamic Programming, route planning, transportation services, unit cost
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