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Mitigating transportation disruptions in a supply chain: a cost-effective strategy
Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia.
Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia.
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Management, Industrial Design and Mechanical Engineering, Industrial Management. University of Gävle, Center for Logistics and Innovative Production. Department of Industrial Engineering and Management, School of Engineering, Jönköping University, Jönköping, Sweden.
Centre for Business in Society, Coventry University, Coventry, United Kingdom.
2019 (English)In: International Journal of Logistics, ISSN 1367-5567, E-ISSN 1469-848XArticle in journal (Refereed) Epub ahead of print
Abstract [en]

Transportation disruptions can be damaging to a supply chain because goods may not arrive on time and this jeopardises the service level to the customers. While supply chain disruptions have gained significant attention from scholars, little has been done to explore these disruptions in the context of transportation. The study described in this paper aims to address disruptions occurring in the transportation of goods from a plant to a distribution centre. We modelled this real case to obtain insights on the effectiveness of different strategies to mitigate transportation disruptions. We evaluated four mitigation strategies and compared the outcomes in terms of service level and total costs: (1) the risk acceptance strategy, (2) the redundant stock strategy, (3) the flexible route strategy, and (4) the redundant-flexibility strategy. The results suggest that the best strategy differs depending on the budget that managers are willing to deploy to improve the service level. The simulation experiments and the use of the Incremental Cost Effectiveness Ratio (ICER) would be instrumental in helping decision makers in selecting the best disruption mitigation strategies where the best option would likely be different under varying circumstances. 

Place, publisher, year, edition, pages
Taylor & Francis, 2019.
Keywords [en]
cost-effectiveness analysis, flexible route, mitigation strategy, redundant stock, simulation modelling, Transportation disruptions
National Category
Other Engineering and Technologies Economics and Business
Identifiers
URN: urn:nbn:se:hig:diva-30577DOI: 10.1080/13675567.2019.1648640ISI: 000479801800001Scopus ID: 2-s2.0-85070313071OAI: oai:DiVA.org:hig-30577DiVA, id: diva2:1346962
Note

Funding agency:

- Ministry of Research, Technology and Higher Education, Republic of Indonesia Grant no. 954/PKS/ITS/2018- Coventry University  - Institut Teknologi Sepuluh Nopember (ITS)  - Jönköping University 

Available from: 2019-08-29 Created: 2019-08-29 Last updated: 2019-08-29Bibliographically approved

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