Mitigating transportation disruptions in a supply chain: a cost-effective strategy

Gustav Albertzeth, Nyoman Pujawan, Per Hilletofth, Benny Tjahjono

    Research output: Contribution to journalArticlepeer-review

    13 Citations (Scopus)
    206 Downloads (Pure)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)139-158
    Number of pages20
    JournalInternational Journal of Logistics Research and Applications
    Volume23
    Issue number2
    Early online date31 Jul 2019
    DOIs
    Publication statusPublished - 2020

    Funder

    This work was supported by the Ministry of Research, Technology and Higher Education, Republic of Indonesia [grant number 954/PKS/ITS/2018] and the research collaboration between Institut Teknologi Sepuluh Nopember (ITS), Coventry University and Jönköping University.

    Keywords

    • Transportation disruptions
    • cost-effectiveness analysis
    • flexible route
    • mitigation strategy
    • redundant stock
    • simulation modelling

    ASJC Scopus subject areas

    • Management Information Systems
    • Control and Systems Engineering
    • Information Systems
    • Computer Science Applications
    • Management Science and Operations Research

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