Logistical network design with robustness and complexity considerations

Abstract

Purpose -This paper aims to propose a logistical network design framework with robustness and complexity considerations. Design/methodology/approach -The paper defines robustness, complexity, and normalised efficiency of a logistical network. A mathematical model is then constructed based on the conceptual framework and applied to a hypothetical case study with varying robustness requirements. The mathematical model is formulated as an Mixed-Integer Linear Programming problem. Furthermore, the paper introduces a graph-theoretic view of the logistical network and presents its topological properties such as average path length, clustering coefficient, and degree distribution. Findings -The results show that logistical network configurations can be obtained with desirable robustness levels whilst minimising cost. The relationships of robustness versus normalised efficiency and complexity are also presented. The results show that relationships between logistical network topological properties and robustness exist, as in other real world natural and man-made complex networks. Practical implications -Logistical network design is one of the earliest strategic decisions in supply chain management that supply chain managers have to make. Practitioners and researchers typically focus on optimising efficiency and/or responsiveness of logistical networks. It is argued that logistical network designers should also consider robustness and complexity as they are important characteristics of logistical network functionality. The logistical network design frame work successfully incorporates robustness and complexity into design considerations. Originality/value -This paper newly introduces other important performance measures, robustness and complexity, into the logistical network design objective. The design framework is highly relevant and adds value to logistical network designers and managers.

Selecting the right supply chain based on risks

“…According to Meepetchdee and Shah (2007), it is defined as the extent to which the supply chain is able to carry out its functions despite some damage done to it, e.g. in the face of an attack (Dekker and Colbert, 2004).…”

“…When concentrating on the strategic phase of supply chain management (SCM), the selection of the appropriate supply chain strategy is crucial to achieve a fit with the supply chain's risks. Supply chain strategies such as agility (Ramesh and Devadasan, 2007;Sharifi et al, 2006;Yauch, 2011), robustness (Meepetchdee and Shah, 2007;Stonebraker et al, 2009), and resilience (Ponomarov and Holcomb, 2009;Sheffi, 2005) have previously been discussed in the realm of manufacturing and SCM. The main purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on the risk dimensions of "probability" and "impact".…”

Integrated Forward-reverse Logistics Network Design under Uncertainty and Reliability Consideration

“…the continuous variables, and assignment variables indicating the assignment of customer zones to the hybrid facilities under each realization. Due to the strategic nature of the decisions regarding the number and location of facilities, and since they cannot be changed in the short time [16,56], the corresponding location variables are xed and cannot be changed under various realizations. However, the violation of chance constraints under realizations should be considered as a penalty in the objective function of the deterministic and robust models [57].…”

Dealing with supply chain risks

“…In line with this, Meepetchdee and Shah (2007) argue that, besides aiming at efficiency and responsiveness, logistical network designers should also consider robustness as it is an important characteristic of functioning logistical This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here (www.cbs.dk). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.…”