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A simple algorithm to evaluate supply-chain reliability for brittle commodity logistics under production and delivery constraints

Author

Listed:
  • Yi-Kuei Lin

    (National Taiwan University of Science and Technology)

  • Cheng-Ta Yeh

    (Shih Hsin University)

  • Cheng-Fu Huang

    (National Taiwan University of Science and Technology)

Abstract

This paper focuses on developing a network model to evaluate supply-chain reliability for the brittle commodity logistics, in which the network is composed of branches and vertices. A vertex denotes a supplier, a transfer center, or a customer and a branch connecting a pair of vertices denotes a carrier. In the brittle commodity logistics network, each supplier has limited production capacity and the production cost is counted in terms of the number of the provided goods. Moreover, the delivery capacity (e.g. number of containers) provided by any carrier is multistate because the partial capacities may be reserved for other customers, and the delivery cost is counted in terms of the consumed delivery capacity. In the brittle commodity delivery, the goods may be damaged by natural disasters, traffic accidents, collisions, and so on, such that the intact goods can not satisfy the customer demand. Hence the delivery damage should be considered while evaluating the performance of a logistics network. This paper proposes the supply-chain reliability, which is defined as the probability of the network to successfully deliver goods to the customer with the delivery damage, limited production capacity, and budget considerations, to be a performance index. In terms of minimal paths, an algorithm is developed to evaluate the supply-chain reliability. A practical case of flat glass logistics is employed to discuss the management implications of the supply-chain reliability.

Suggested Citation

  • Yi-Kuei Lin & Cheng-Ta Yeh & Cheng-Fu Huang, 2016. "A simple algorithm to evaluate supply-chain reliability for brittle commodity logistics under production and delivery constraints," Annals of Operations Research, Springer, vol. 244(1), pages 67-83, September.
    • Handle: RePEc:spr:annopr:v:244:y:2016:i:1:d:10.1007_s10479-014-1741-0
    DOI: 10.1007/s10479-014-1741-0
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    References listed on IDEAS

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    1. Lin, Yi-Kuei & Yeh, Cheng-Ta, 2011. "Maximal network reliability for a stochastic power transmission network," Reliability Engineering and System Safety, Elsevier, vol. 96(10), pages 1332-1339.
    2. Nader Azad & Georgios Saharidis & Hamid Davoudpour & Hooman Malekly & Seyed Yektamaram, 2013. "Strategies for protecting supply chain networks against facility and transportation disruptions: an improved Benders decomposition approach," Annals of Operations Research, Springer, vol. 210(1), pages 125-163, November.
    3. Lin, Yi-Kuei & Yeh, Cheng-Ta, 2010. "Optimal carrier selection based on network reliability criterion for stochastic logistics networks," International Journal of Production Economics, Elsevier, vol. 128(2), pages 510-517, December.
    4. Chopra, Sunil, 2003. "Designing the distribution network in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(2), pages 123-140, March.
    5. Lin, Yi-Kuei, 2007. "Performance evaluation for the logistics system in case that capacity weight varies from arcs and types of commodity," International Journal of Production Economics, Elsevier, vol. 107(2), pages 572-580, June.
    6. Lin, Yi-Kuei, 2010. "A stochastic model to study the system capacity for supply chains in terms of minimal cuts," International Journal of Production Economics, Elsevier, vol. 124(1), pages 181-187, March.
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    Cited by:

    1. Yi-Kuei Lin & Cheng-Fu Huang & Yi-Chieh Liao, 2019. "Reliability of a stochastic intermodal logistics network under spoilage and time considerations," Annals of Operations Research, Springer, vol. 277(1), pages 95-118, June.
    2. Huang, Cheng-Hao & Lin, Yi-Kuei, 2024. "Rescue and safety system development and performance evaluation by network reliability," Reliability Engineering and System Safety, Elsevier, vol. 241(C).
    3. Yi-Feng Niu & Can He & De-Qiang Fu, 2022. "Reliability assessment of a multi-state distribution network under cost and spoilage considerations," Annals of Operations Research, Springer, vol. 309(1), pages 189-208, February.
    4. Amirmohsen Golmohammadi & Alireza Tajbakhsh & Mohamed Dia & Pawoumodom M. Takouda, 2022. "Effect of timing on reliability improvement and ordering decisions in a decentralized assembly system," Annals of Operations Research, Springer, vol. 312(1), pages 159-192, May.
    5. Jihai Zhang & Zhile Wang & Fan Ren, 2019. "Optimization of humanitarian relief supply chain reliability: a case study of the Ya’an earthquake," Annals of Operations Research, Springer, vol. 283(1), pages 1551-1572, December.

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