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Assessment of system reliability for a stochastic-flow distribution network with the spoilage property

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  • Yi-Kuei Lin
  • Cheng-Fu Huang
  • Cheng-Ta Yeh

Abstract

In supply chain management, satisfying customer demand is the most concerned for the manager. However, the goods may rot or be spoilt during delivery owing to natural disasters, inclement weather, traffic accidents, collisions, and so on, such that the intact goods may not meet market demand. This paper concentrates on a stochastic-flow distribution network (SFDN), in which a node denotes a supplier, a transfer station, or a market, while a route denotes a carrier providing the delivery service for a pair of nodes. The available capacity of the carrier is stochastic because the capacity may be partially reserved by other customers. The addressed problem is to evaluate the system reliability, the probability that the SFDN can satisfy the market demand with the spoilage rate under the budget constraint from multiple suppliers to the customer. An algorithm is developed in terms of minimal paths to evaluate the system reliability along with a numerical example to illustrate the solution procedure. A practical case of fruit distribution is presented accordingly to emphasise the management implication of the system reliability.

Suggested Citation

  • Yi-Kuei Lin & Cheng-Fu Huang & Cheng-Ta Yeh, 2016. "Assessment of system reliability for a stochastic-flow distribution network with the spoilage property," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(6), pages 1421-1432, April.
    • Handle: RePEc:taf:tsysxx:v:47:y:2016:i:6:p:1421-1432
    DOI: 10.1080/00207721.2014.932466
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    Cited by:

    1. Esha Datta & Neeraj Goyal, 2023. "An efficient sum of disjoint product method for reliability evaluation of stochastic flow networks using d-MPs," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(4), pages 1228-1246, August.
    2. Xu, Xiu-Zhen & Niu, Yi-Feng & Song, Yi-Fan, 2021. "Computing the reliability of a stochastic distribution network subject to budget constraint," Reliability Engineering and System Safety, Elsevier, vol. 216(C).

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