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Reliability assessment of a multi-state distribution network under cost and spoilage considerations

Author

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  • Yi-Feng Niu

    (Chongqing University of Posts and Telecommunications)

  • Can He

    (Chongqing University of Posts and Telecommunications)

  • De-Qiang Fu

    (Chongqing University of Posts and Telecommunications)

Abstract

The fundamental mission of a distribution network is to satisfy the customer demand by providing sufficient delivery capacity. However, the capacity of a distribution network is practically stochastic because of unexpected events, and moreover, the commodities may rot or be spoilt during delivery owing to inclement weather, traffic accidents, collisions, and so on, such that the intact commodity flow may not meet market demand. This paper focuses on the reliability of a multi-state distribution network (MSDN) with cost and spoilage characteristics, defined as the probability that the MSDN is able to distribute a sufficient quantity of goods to meet the market demand under delivery spoilage and budget limit considerations. A specific spoilage rate associated with each route is adopted to characterize the perishability of commodity flows, and the critical routes whose spoilage rate change has the biggest impact on network reliability are identified with the use of sensitivity analysis method. Apart from delivery cost, the cost involved with the disposal of spoilt goods is also incorporated into the reliability indicator. A minimal paths based algorithm is presented to calculate network reliability, together with an example to illustrate the procedure. A real fruit distribution network is accordingly discussed to demonstrate the utility of the algorithm and the managerial implication of network reliability.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:annopr:v:309:y:2022:i:1:d:10.1007_s10479-021-04322-7
    DOI: 10.1007/s10479-021-04322-7
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    References listed on IDEAS

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