IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v59y2012i7p577-586.html
   My bibliography  Save this article

Evaluating cost and reliability integrated performance of stochastic logistics systems

Author

Listed:
  • Chin‐Chia Jane
  • Yih‐Wenn Laih

Abstract

The significance of integrating reliability into logistics performance has been established [The Logistics Performance Index and Its Indicators, World Bank International Trade and Transport Departments, (2010)]. Hence, as a response to the work by the World Bank, the present article aims to evaluate the performance index Rb,d of logistics systems as the probability that a specified demand d can be distributed successfully through multistate arc capacities from the source to the destination under the constraint that the total distribution cost should not exceed the cost limitation b. This article provides a pioneering approach for a straightforward computation of the performance index Rb,d. The proposed algorithm is a hybrid between the polynomial time capacity‐scaling algorithm, which was presented by Edmonds and Karp [JACM 19 (1972)], and the decomposition algorithm, which was presented by Jane and Laih [IEEE (2008)]. Currently, the proposed approach is the only algorithm that can directly compute Rb,d. An illustration of the proposed algorithm is presented. The results of the computational experiments indicate that the presented algorithm outperforms existing algorithms. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012

Suggested Citation

  • Chin‐Chia Jane & Yih‐Wenn Laih, 2012. "Evaluating cost and reliability integrated performance of stochastic logistics systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(7), pages 577-586, October.
    • Handle: RePEc:wly:navres:v:59:y:2012:i:7:p:577-586
    DOI: 10.1002/nav.21507
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/nav.21507
    Download Restriction: no
    File URL: https://libkey.io/10.1002/nav.21507?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
    ---><---

    References listed on IDEAS

    as
    1. Lin, Yi-Kuei, 2006. "Evaluate the performance of a stochastic-flow network with cost attribute in terms of minimal cuts," Reliability Engineering and System Safety, Elsevier, vol. 91(5), pages 539-545.
    2. Jane, Chin-Chia, 2011. "Performance evaluation of logistics systems under cost and reliability considerations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 130-137, March.
    3. W-C Yeh, 2005. "A novel method for the network reliability in terms of capacitated-minimum-paths without knowing minimum-paths in advance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1235-1240, October.
    4. Ahuja, Ravindra K. & Kodialam, Murali & Mishra, Ajay K. & Orlin, James B., 1997. "Computational investigations of maximum flow algorithms," European Journal of Operational Research, Elsevier, vol. 97(3), pages 509-542, March.
    5. Yeh, Wei-Chang, 2005. "A new approach to evaluate reliability of multistate networks under the cost constraint," Omega, Elsevier, vol. 33(3), pages 203-209, June.
    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. Jia Shu & Haiqing Heng, 2016. "The probability of the existence of a feasible flow in a stochastic transportation network," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(6), pages 479-491, September.
    2. Xiu-Zhen Xu & Yi-Feng Niu & Qing Li, 2019. "Efficient Enumeration of - Minimal Paths in Reliability Evaluation of Multistate Networks," Complexity, Hindawi, vol. 2019, pages 1-10, March.
    3. Yi-Kuei Lin & Cheng-Ta Yeh & Cheng-Fu Huang, 2017. "Reliability assessment of a multistate freight network for perishable merchandise with multiple suppliers and buyers," International Journal of Systems Science, Taylor & Francis Journals, vol. 48(1), pages 74-83, January.
    4. Yeh, Wei-Chang, 2024. "A new hybrid inequality BAT for comprehensive all-level d-MP identification using minimal paths in Multistate Flow Network reliability analysis," Reliability Engineering and System Safety, Elsevier, vol. 244(C).
    5. 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.
    6. Yi-Kuei Lin & Thi-Phuong Nguyen & Louis Cheng-Lu Yeng, 2022. "Reliability evaluation of a stochastic multimodal transport network under time and budget considerations," Annals of Operations Research, Springer, vol. 312(1), pages 369-387, May.
    7. Yi-Kuei Lin & Hsien-Chang Chou & Ping-Chen Chang, 2017. "Reliability and sensitivity analysis for a banking company transmission system," Journal of Risk and Reliability, , vol. 231(2), pages 146-154, April.

    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. Niu, Yi-Feng & Lam, William H.K. & Gao, Ziyou, 2014. "An efficient algorithm for evaluating logistics network reliability subject to distribution cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 175-189.
    2. Niu, Yi-Feng & Gao, Zi-You & Lam, William H.K., 2017. "A new efficient algorithm for finding all d-minimal cuts in multi-state networks," Reliability Engineering and System Safety, Elsevier, vol. 166(C), pages 151-163.
    3. Xiu-Zhen Xu & Yi-Feng Niu & Qing Li, 2019. "Efficient Enumeration of - Minimal Paths in Reliability Evaluation of Multistate Networks," Complexity, Hindawi, vol. 2019, pages 1-10, March.
    4. Niu, Yi-Feng & Wan, Xiao-Yu & Xu, Xiu-Zhen & Ding, Dong, 2020. "Finding all multi-state minimal paths of a multi-state flow network via feasible circulations," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    5. Niu, Yi-Feng & Gao, Zi-You & Lam, William H.K., 2017. "Evaluating the reliability of a stochastic distribution network in terms of minimal cuts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 100(C), pages 75-97.
    6. Niu, Yi-Feng & Song, Yi-Fan & Xu, Xiu-Zhen & Zhao, Xia, 2022. "Efficient reliability computation of a multi-state flow network with cost constraint," Reliability Engineering and System Safety, Elsevier, vol. 222(C).
    7. Niu, Yi-Feng, 2021. "Performance measure of a multi-state flow network under reliability and maintenance cost considerations," Reliability Engineering and System Safety, Elsevier, vol. 215(C).
    8. Kozyra, Paweł Marcin, 2023. "The usefulness of (d,b)-MCs and (d,b)-MPs in network reliability evaluation under delivery or maintenance cost constraints," Reliability Engineering and System Safety, Elsevier, vol. 234(C).
    9. Jane, Chin-Chia & Laih, Yih-Wenn, 2010. "A dynamic bounding algorithm for approximating multi-state two-terminal reliability," European Journal of Operational Research, Elsevier, vol. 205(3), pages 625-637, September.
    10. Xu, Xiu-Zhen & Zhou, Run-Hui & Wu, Guo-Lin & Niu, Yi-Feng, 2024. "Evaluating the transmission distance-constrained reliability for a multi-state flow network," Reliability Engineering and System Safety, Elsevier, vol. 244(C).
    11. 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.
    12. 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).
    13. Sedeño-Noda, A. & González-Dávila, E. & González-Martín, C. & González-Yanes, A., 2009. "Preemptive benchmarking problem: An approach for official statistics in small areas," European Journal of Operational Research, Elsevier, vol. 196(1), pages 360-369, July.
    14. Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Xin Li, 2020. "Logistics Service Mode Selection for Last Mile Delivery: An Analysis Method Considering Customer Utility and Delivery Service Cost," Sustainability, MDPI, vol. 13(1), pages 1-22, December.
    15. Bai, Guanghan & Zuo, Ming J. & Tian, Zhigang, 2015. "Search for all d-MPs for all d levels in multistate two-terminal networks," Reliability Engineering and System Safety, Elsevier, vol. 142(C), pages 300-309.
    16. Yeh, Wei-Chang & Chu, Ta-Chung, 2018. "A novel multi-distribution multi-state flow network and its reliability optimization problem," Reliability Engineering and System Safety, Elsevier, vol. 176(C), pages 209-217.
    17. Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Hai-Mei Lv, 2020. "The Logistics Service Mode Selection for Last Mile Delivery Considering Delivery Service Cost and Capability," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    18. Cancela, Héctor & Petingi, Louis, 2007. "Properties of a generalized source-to-all-terminal network reliability model with diameter constraints," Omega, Elsevier, vol. 35(6), pages 659-670, December.
    19. Yi-Kuei Lin & Cheng-Fu Huang, 2016. "Reliability evaluation according to a routing scheme for multi-state computer networks under assured accuracy rate," Annals of Operations Research, Springer, vol. 244(1), pages 221-240, September.
    20. Lysgaard, Jens, 2004. "Reachability cuts for the vehicle routing problem with time windows," CORAL Working Papers L-2004-01, University of Aarhus, Aarhus School of Business, Department of Business Studies.

    More about this item

    Statistics

    Access and download statistics

    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:wly:navres:v:59:y:2012:i:7:p:577-586. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    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.