|
|||||
|
|
Reliable design of an integrated supply chain with expedited shipments under disruption risks |
|
| Institution: | 1. Department of Mathematics and Industrial Engineering, Polytechnique Montréal, Montréal H3C 3A7, Canada;2. CIRRELT, Montréal H3C 3A7, Canada;3. Research Center on Modern Logistics, Graduate School at Shenzhen, Tsinghua University, Shenzhen 518055, China;4. Zhejiang Cainiao Supply Chain Management Co., Ltd., Hangzhou 310000, China;1. Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka, Bangladesh;2. Faculty of Engineering and Information Technology, University of Technology Sydney, Sydney, Australia;3. UTS Business School, University of Technology Sydney, Sydney, Australia |
| Abstract: | This paper studied the design of a two-echelon supply chain where a set of suppliers serve a set of terminals that receive uncertain customer demands. In particular, we considered probabilistic transportation disruptions that may halt product supply from certain suppliers. We formulated this problem into an integer nonlinear program to determine the optimal system design that minimizes the expected total cost. A customized solution algorithm based on Lagrangian relaxation was developed to efficiently solve this model. Several numerical examples were conducted to test the proposed model and draw managerial insights into how the key parameters affect the optimal system design. |
| Keywords: | Supply chain design Transportation disruptions Expedited shipment Inventory management Lagrangian relaxation |
| 本文献已被 ScienceDirect 等数据库收录！ | |