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

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  • 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
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