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Evaluating cost and reliability integrated performance of stochastic logistics systems

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  • Chin‐Chia Jane
  • Yih‐Wenn Laih

Abstract

The significance of integrating reliability into logistics performance has been established [The Logistics Performance Index and Its Indicators, World Bank International Trade and Transport Departments, (2010)]. Hence, as a response to the work by the World Bank, the present article aims to evaluate the performance index Rb,d of logistics systems as the probability that a specified demand d can be distributed successfully through multistate arc capacities from the source to the destination under the constraint that the total distribution cost should not exceed the cost limitation b. This article provides a pioneering approach for a straightforward computation of the performance index Rb,d. The proposed algorithm is a hybrid between the polynomial time capacity‐scaling algorithm, which was presented by Edmonds and Karp [JACM 19 (1972)], and the decomposition algorithm, which was presented by Jane and Laih [IEEE (2008)]. Currently, the proposed approach is the only algorithm that can directly compute Rb,d. An illustration of the proposed algorithm is presented. The results of the computational experiments indicate that the presented algorithm outperforms existing algorithms. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012

Suggested Citation

  • 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.
    • Handle: RePEc:wly:navres:v:59:y:2012:i:7:p:577-586
    DOI: 10.1002/nav.21507
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    References listed on IDEAS

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    1. Lin, Yi-Kuei, 2006. "Evaluate the performance of a stochastic-flow network with cost attribute in terms of minimal cuts," Reliability Engineering and System Safety, Elsevier, vol. 91(5), pages 539-545.
    2. Jane, Chin-Chia, 2011. "Performance evaluation of logistics systems under cost and reliability considerations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 130-137, March.
    3. W-C Yeh, 2005. "A novel method for the network reliability in terms of capacitated-minimum-paths without knowing minimum-paths in advance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1235-1240, October.
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    5. 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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    Cited by:

    1. Jia Shu & Haiqing Heng, 2016. "The probability of the existence of a feasible flow in a stochastic transportation network," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(6), pages 479-491, September.
    2. Xiu-Zhen Xu & Yi-Feng Niu & Qing Li, 2019. "Efficient Enumeration of - Minimal Paths in Reliability Evaluation of Multistate Networks," Complexity, Hindawi, vol. 2019, pages 1-10, March.
    3. 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.
    4. Yi-Kuei Lin & Thi-Phuong Nguyen & Louis Cheng-Lu Yeng, 2022. "Reliability evaluation of a stochastic multimodal transport network under time and budget considerations," Annals of Operations Research, Springer, vol. 312(1), pages 369-387, May.
    5. Yi-Kuei Lin & Cheng-Ta Yeh & Cheng-Fu Huang, 2017. "Reliability assessment of a multistate freight network for perishable merchandise with multiple suppliers and buyers," International Journal of Systems Science, Taylor & Francis Journals, vol. 48(1), pages 74-83, January.
    6. Yi-Kuei Lin & Hsien-Chang Chou & Ping-Chen Chang, 2017. "Reliability and sensitivity analysis for a banking company transmission system," Journal of Risk and Reliability, , vol. 231(2), pages 146-154, April.

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