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Distribution and Inventory Planning in a Supply Chain Under Transportation Route Disruptions and Uncertain Demands

Author

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  • Himanshu Shrivastava

    (IITB-Monash Research Academy, IIT Bombay, Mumbai, India)

  • Andreas T. Ernst

    (Monash University, Melbourne, Australia)

  • Mohan Krishnamoorthy

    (The University of Queensland, Brisbane, Australia & Monash University, Melbourne, Australia)

Abstract

This article considers transportation disruptions and its detrimental impact on the quality of the enroute shipment. The authors consider a supply chain system of a short life cycle product that has a capacitated supplier, a retailer and multiple routes of transportation under different disruption risks, uncertain cost of transportation, and uncertain demands. The authors investigate a hybrid problem in which the firm needs to develop a suitable distribution strategy under disruption risks along with an optimal checking policy when faced with the supply of varying quantities of damaged items. The authors formulate a non-linear mathematical model in which the overall objective is to maximise the expected profit and to help the firm in decision making under uncertain environments. Lastly, a statistical study is carried out to perform uncertainty analysis.

Suggested Citation

  • Himanshu Shrivastava & Andreas T. Ernst & Mohan Krishnamoorthy, 2019. "Distribution and Inventory Planning in a Supply Chain Under Transportation Route Disruptions and Uncertain Demands," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 12(3), pages 47-71, July.
    • Handle: RePEc:igg:jisscm:v:12:y:2019:i:3:p:47-71
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