IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v114y2018icp242-269.html
   My bibliography  Save this article

The impact of liner shipping unreliability on the production–distribution scheduling of a decentralized manufacturing system

Author

Listed:
  • Sun, X.T.
  • Chung, S.H.
  • Chan, Felix T.S.
  • Wang, Zheng

Abstract

Liner shipping uncertainty affects global supply chains reliability seriously. The pressure from downstream forces the make-to-order manufacturer to face high penalty cost due to stochastic shipping lead-times. A new risk-averse model is proposed aimed at improving production scheduling reliability integrated with shipment assignments in terms of total operating cost. The closed form of the risk cost of job-shipment assignment under given reliability levels is formulated, which verifies the effects of shipping uncertainty on the production scheduling and operating cost. The computational and statistical evaluation demonstrate our approach can compensate the amplification effects of the high penalty level and shipping uncertainty.

Suggested Citation

  • Sun, X.T. & Chung, S.H. & Chan, Felix T.S. & Wang, Zheng, 2018. "The impact of liner shipping unreliability on the production–distribution scheduling of a decentralized manufacturing system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 242-269.
    • Handle: RePEc:eee:transe:v:114:y:2018:i:c:p:242-269
    DOI: 10.1016/j.tre.2018.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554517306592
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2018.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Agnetis, Alessandro & Aloulou, Mohamed Ali & Fu, Liang-Liang, 2014. "Coordination of production and interstage batch delivery with outsourced distribution," European Journal of Operational Research, Elsevier, vol. 238(1), pages 130-142.
    2. Sun, Wei & Huang, Guo H. & Lv, Ying & Li, Gongchen, 2013. "Inexact joint-probabilistic chance-constrained programming with left-hand-side randomness: An application to solid waste management," European Journal of Operational Research, Elsevier, vol. 228(1), pages 217-225.
    3. Gao, Su & Qi, Lian & Lei, Lei, 2015. "Integrated batch production and distribution scheduling with limited vehicle capacity," International Journal of Production Economics, Elsevier, vol. 160(C), pages 13-25.
    4. Kathryn E. Stecke & Xuying Zhao, 2007. "Production and Transportation Integration for a Make-to-Order Manufacturing Company with a Commit-to-Delivery Business Mode," Manufacturing & Service Operations Management, INFORMS, vol. 9(2), pages 206-224, September.
    5. Haiyan Wang & Chung‐Yee Lee, 2005. "Production and transport logistics scheduling with two transport mode choices," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(8), pages 796-809, December.
    6. Sun, X.T. & Chung, S.H. & Chan, Felix T.S., 2015. "Integrated scheduling of a multi-product multi-factory manufacturing system with maritime transport limits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 110-127.
    7. Azadian, Farshid & Murat, Alper & Chinnam, Ratna Babu, 2015. "Integrated production and logistics planning: Contract manufacturing and choice of air/surface transportation," European Journal of Operational Research, Elsevier, vol. 247(1), pages 113-123.
    8. Kergosien, Y. & Gendreau, M. & Billaut, J.-C., 2017. "A Benders decomposition-based heuristic for a production and outbound distribution scheduling problem with strict delivery constraints," European Journal of Operational Research, Elsevier, vol. 262(1), pages 287-298.
    9. Heydari, Jafar, 2014. "Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 63(C), pages 44-58.
    10. Qi, Xiangtong & Song, Dong-Ping, 2012. "Minimizing fuel emissions by optimizing vessel schedules in liner shipping with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 863-880.
    11. Guo, Zhaoxia & Shi, Leyuan & Chen, Longchao & Liang, Yong, 2017. "A harmony search-based memetic optimization model for integrated production and transportation scheduling in MTO manufacturing," Omega, Elsevier, vol. 66(PB), pages 327-343.
    12. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    13. Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2013. "Minimizing the weighted number of tardy jobs with due date assignment and capacity-constrained deliveries for multiple customers in supply chains," European Journal of Operational Research, Elsevier, vol. 228(2), pages 345-357.
    14. Zhi-Long Chen & Guruprasad Pundoor, 2006. "Order Assignment and Scheduling in a Supply Chain," Operations Research, INFORMS, vol. 54(3), pages 555-572, June.
    15. Brouer, Berit D. & Dirksen, Jakob & Pisinger, David & Plum, Christian E.M. & Vaaben, Bo, 2013. "The Vessel Schedule Recovery Problem (VSRP) – A MIP model for handling disruptions in liner shipping," European Journal of Operational Research, Elsevier, vol. 224(2), pages 362-374.
    16. Lee, Chung-Yee & Lee, Hau L. & Zhang, Jiheng, 2015. "The impact of slow ocean steaming on delivery reliability and fuel consumption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 176-190.
    17. Bilsel, R. Ufuk & Ravindran, A., 2011. "A multiobjective chance constrained programming model for supplier selection under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1284-1300, September.
    18. Lixin Tang & Hua Gong & Jiyin Liu & Feng Li, 2014. "Bicriteria scheduling on a single batching machine with job transportation and deterioration considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 61(4), pages 269-285, June.
    19. A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
    20. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    21. Timpe, Christian H. & Kallrath, Josef, 2000. "Optimal planning in large multi-site production networks," European Journal of Operational Research, Elsevier, vol. 126(2), pages 422-435, October.
    22. Chen Li & Xiangtong Qi & Chung-Yee Lee, 2015. "Disruption Recovery for a Vessel in Liner Shipping," Transportation Science, INFORMS, vol. 49(4), pages 900-921, November.
    23. Borodin, Valeria & Dolgui, Alexandre & Hnaien, Faicel & Labadie, Nacima, 2016. "Component replenishment planning for a single-level assembly system under random lead times: A chance constrained programming approach," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 79-86.
    24. Song, Dong-Ping & Li, Dong & Drake, Paul, 2015. "Multi-objective optimization for planning liner shipping service with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 1-22.
    25. Li, Chen & Qi, Xiangtong & Song, Dongping, 2016. "Real-time schedule recovery in liner shipping service with regular uncertainties and disruption events," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 762-788.
    26. Cheng, Ba-Yi & Leung, Joseph Y-T. & Li, Kai, 2017. "Integrated scheduling on a batch machine to minimize production, inventory and distribution costs," European Journal of Operational Research, Elsevier, vol. 258(1), pages 104-112.
    27. Sawik, Tadeusz, 2016. "Integrated supply, production and distribution scheduling under disruption risks," Omega, Elsevier, vol. 62(C), pages 131-144.
    28. Agnetis, Alessandro & Aloulou, Mohamed Ali & Fu, Liang-Liang, 2016. "Production and interplant batch delivery scheduling: Dominance and cooperation," International Journal of Production Economics, Elsevier, vol. 182(C), pages 38-49.
    29. Li, Kai & Jia, Zhao-hong & Leung, Joseph Y.-T., 2015. "Integrated production and delivery on parallel batching machines," European Journal of Operational Research, Elsevier, vol. 247(3), pages 755-763.
    30. Mínguez, R. & Conejo, A.J. & García-Bertrand, R., 2011. "Reliability and decomposition techniques to solve certain class of stochastic programming problems," Reliability Engineering and System Safety, Elsevier, vol. 96(2), pages 314-323.
    31. Hung, Yi-Feng & Hsiao, Jui-Yi, 2013. "Inventory rationing decision models during replenishment lead time," International Journal of Production Economics, Elsevier, vol. 144(1), pages 290-300.
    32. İsmail Karaoğlan & Saadettin Erhan Kesen, 2017. "The coordinated production and transportation scheduling problem with a time-sensitive product: a branch-and-cut algorithm," International Journal of Production Research, Taylor & Francis Journals, vol. 55(2), pages 536-557, January.
    33. Mensendiek, Arne & Gupta, Jatinder N.D. & Herrmann, Jan, 2015. "Scheduling identical parallel machines with fixed delivery dates to minimize total tardiness," European Journal of Operational Research, Elsevier, vol. 243(2), pages 514-522.
    34. Liu, Peihai & Lu, Xiwen, 2016. "Integrated production and job delivery scheduling with an availability constraint," International Journal of Production Economics, Elsevier, vol. 176(C), pages 1-6.
    35. Wang, Tingsong & Meng, Qiang & Wang, Shuaian & Tan, Zhijia, 2013. "Risk management in liner ship fleet deployment: A joint chance constrained programming model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 1-12.
    36. John H. Park & Burak Kazaz & Scott Webster, 2017. "Risk Mitigation of Production Hedging," Production and Operations Management, Production and Operations Management Society, vol. 26(7), pages 1299-1314, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen, Xin & Sun, Xuting & Sun, Yige & Yue, Xiaohang, 2021. "Airline crew scheduling: Models and algorithms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    2. Chung, Sai-Ho, 2021. "Applications of smart technologies in logistics and transport: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    3. Chao, Shih-Liang & Yu, Ming-Miin & Wei, Sin-Yi, 2024. "Ascertaining the impact of e-service quality on e-loyalty for the e-commerce platform of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    4. Sun, Yige & Chung, Sai-Ho & Wen, Xin & Ma, Hoi-Lam, 2021. "Novel robotic job-shop scheduling models with deadlock and robot movement considerations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    5. Wang, Yingjia & Lin, Jiaxin & Choi, Tsan-Ming, 2020. "Gray market and counterfeiting in supply chains: A review of the operations literature and implications to luxury industries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    6. Maitra, Debasish & Rehman, Mobeen Ur & Dash, Saumya Ranjan & Kang, Sang Hoon, 2021. "Oil price volatility and the logistics industry: Dynamic connectedness with portfolio implications," Energy Economics, Elsevier, vol. 102(C).
    7. Choi, Tsan-Ming, 2020. "Innovative “Bring-Service-Near-Your-Home” operations under Corona-Virus (COVID-19/SARS-CoV-2) outbreak: Can logistics become the Messiah?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    8. Sun, Xuting & Chung, Sai-Ho & Choi, Tsan-Ming & Sheu, Jiuh-Biing & Ma, Hoi Lam, 2020. "Combating lead-time uncertainty in global supply chain's shipment-assignment: Is it wise to be risk-averse?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 406-434.
    9. Wang, Shuaian & Yan, Ran & Qu, Xiaobo, 2019. "Development of a non-parametric classifier: Effective identification, algorithm, and applications in port state control for maritime transportation," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 129-157.
    10. Jain, Prachi & Maitra, Debasish & Kang, Sang Hoon, 2023. "Oil price and the automobile industry: Dynamic connectedness and portfolio implications with downside risk," Energy Economics, Elsevier, vol. 119(C).
    11. Han, Dongya & Yang, Yongjian & Wang, Dujuan & Cheng, T.C.E. & Yin, Yunqiang, 2019. "Integrated production, inventory, and outbound distribution operations with fixed departure times in a three-stage supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 334-347.
    12. Wen, Xin & Siqin, Tana, 2020. "How do product quality uncertainties affect the sharing economy platforms with risk considerations? A mean-variance analysis," International Journal of Production Economics, Elsevier, vol. 224(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sun, Xuting & Chung, Sai-Ho & Choi, Tsan-Ming & Sheu, Jiuh-Biing & Ma, Hoi Lam, 2020. "Combating lead-time uncertainty in global supply chain's shipment-assignment: Is it wise to be risk-averse?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 406-434.
    2. Li, Feng & Xu, Shifu & Xu, Zhou, 2023. "New exact and approximation algorithms for integrated production and transportation scheduling with committed delivery due dates and order acceptance," European Journal of Operational Research, Elsevier, vol. 306(1), pages 127-140.
    3. Olumide F. Abioye & Maxim A. Dulebenets & Junayed Pasha & Masoud Kavoosi, 2019. "A Vessel Schedule Recovery Problem at the Liner Shipping Route with Emission Control Areas," Energies, MDPI, vol. 12(12), pages 1-28, June.
    4. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    5. Maxim A. Dulebenets & Junayed Pasha & Olumide F. Abioye & Masoud Kavoosi, 2021. "Vessel scheduling in liner shipping: a critical literature review and future research needs," Flexible Services and Manufacturing Journal, Springer, vol. 33(1), pages 43-106, March.
    6. Asghari, Mohammad & Jaber, Mohamad Y. & Mirzapour Al-e-hashem, S.M.J., 2023. "Coordinating vessel recovery actions: Analysis of disruption management in a liner shipping service," European Journal of Operational Research, Elsevier, vol. 307(2), pages 627-644.
    7. Aydin, N. & Lee, H. & Mansouri, S.A., 2017. "Speed optimization and bunkering in liner shipping in the presence of uncertain service times and time windows at ports," European Journal of Operational Research, Elsevier, vol. 259(1), pages 143-154.
    8. Ksciuk, Jana & Kuhlemann, Stefan & Tierney, Kevin & Koberstein, Achim, 2023. "Uncertainty in maritime ship routing and scheduling: A Literature review," European Journal of Operational Research, Elsevier, vol. 308(2), pages 499-524.
    9. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    10. Dulebenets, Maxim A., 2018. "A comprehensive multi-objective optimization model for the vessel scheduling problem in liner shipping," International Journal of Production Economics, Elsevier, vol. 196(C), pages 293-318.
    11. Mulder, Judith & Dekker, Rommert, 2019. "Designing robust liner shipping schedules: Optimizing recovery actions and buffer times," European Journal of Operational Research, Elsevier, vol. 272(1), pages 132-146.
    12. Zhang, Abraham & Zheng, Zhichao & Teo, Chung-Piaw, 2022. "Schedule reliability in liner shipping timetable design: A convex programming approach," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 499-525.
    13. Hamed Hasheminia & Changmin Jiang, 2017. "Strategic trade-off between vessel delay and schedule recovery: an empirical analysis of container liner shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(4), pages 458-473, May.
    14. Wang, Shuaian & Wang, Xinchang, 2016. "A polynomial-time algorithm for sailing speed optimization with containership resource sharing," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 394-405.
    15. Song, Dong-Ping & Li, Dong & Drake, Paul, 2015. "Multi-objective optimization for planning liner shipping service with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 1-22.
    16. Li, Chen & Qi, Xiangtong & Song, Dongping, 2016. "Real-time schedule recovery in liner shipping service with regular uncertainties and disruption events," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 762-788.
    17. Xin Wen & Qiong Chen & Yu-Qi Yin & Yui-yip Lau, 2023. "Green Vessel Scheduling with Weather Impact and Emission Control Area Consideration," Mathematics, MDPI, vol. 11(24), pages 1-25, December.
    18. Azeddine Cheref & Alessandro Agnetis & Christian Artigues & Jean-Charles Billaut, 2017. "Complexity results for an integrated single machine scheduling and outbound delivery problem with fixed sequence," Journal of Scheduling, Springer, vol. 20(6), pages 681-693, December.
    19. Wang, Shuaian & Meng, Qiang, 2013. "Reversing port rotation directions in a container liner shipping network," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 61-73.
    20. Dirzka, Christopher & Acciaro, Michele, 2022. "Global shipping network dynamics during the COVID-19 pandemic's initial phases," Journal of Transport Geography, Elsevier, vol. 99(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:114:y:2018:i:c:p:242-269. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.