In manufacturing facilities, shipping and receiving traditionally have
been concentrated in one or two areas of the building. The widespread
introduction of just-in-time shipping policies in US manufacturing co
mpanies during the past 15 years, as well as the common use of decentr
alized receiving in the Japanese automobile industry, has motivated th
e consideration (and occasionally the adoption) of dock configurations
to support decentralized receiving (also known as perimeter receiving
). By providing multiple access points along the perimeter of the buil
ding, decentralized receiving generally reduces the time and cost asso
ciated with moving purchased parts to the locations within the facilit
y where they are used, but also results in increased cost of construct
ion, maintenance, and operation for docks and associated truck access/
egress, as well as additional interior floorspace requirements. We dev
elop an optimization-based procedure to determine which of several pos
sible dock areas to construct, how many doors or gates each should hav
e, how many unloading and internal material handling staff should be a
ssigned to each group, and which inbound materials each group should h
andle. We consider the amortized cost of constructing and equipping th
e docks, the amortized cost of material handling equipment to support
the unloaders and material handlers, the cost of operating the materia
l handling equipment, and labor costs for both unloading and internal
material handling.