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Assessing the Reliability of a Multistate Logistics Network under the Transportation Cost Constraint

Author

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  • Qi Zeng
  • Xiu-Zhen Xu

Abstract

Reliability and transportation cost are two important indicators to measure the performance of logistics network. As a combination of reliability and transportation cost, the performance index R(d,c) of logistics network is defined as the probability that at least d units of flow demand can be successfully transmitted from the source to the destination with the total transportation cost less than or equal to c. In this paper, an algorithm is developed to calculate R(d,c) in terms of (d, c)‐minimal paths ((d, c)‐MPs for short). The proposed algorithm employs a decomposition technique to divide the search space of (d, c)‐MPs such that the search space of (d, c)‐MPs can be dramatically reduced, and thereby (d, c)‐MPs can be efficiently obtained. An example is provided to illustrate the proposed algorithm. Finally, computational experiments conducted on one benchmark network indicate that the proposed method has an advantage over the existing methods.

Suggested Citation

  • Qi Zeng & Xiu-Zhen Xu, 2016. "Assessing the Reliability of a Multistate Logistics Network under the Transportation Cost Constraint," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2016(1).
    • Handle: RePEc:wly:jnddns:v:2016:y:2016:i:1:n:2628950
    DOI: 10.1155/2016/2628950
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
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