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

X. T. Sun, S. H. Chung, Tung Sun Chan, Zheng Wang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

11 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)242-269
Number of pages28
JournalTransportation Research Part E: Logistics and Transportation Review
Volume114
DOIs
Publication statusPublished - 1 Jun 2018

Keywords

  • Multi-factory production–distribution scheduling
  • Probabilistic constrained programming
  • Stochastic programming
  • Supply chain management
  • Uncertain shipping lead time

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

Cite this