TY - JOUR

T1 - A stochastic model to study the system capacity for supply chains in terms of minimal cuts

AU - Lin, Yi-Kuei

PY - 2010/3/1

Y1 - 2010/3/1

N2 - For a single-commodity stochastic flow network, the system capacity is the maximum flow from the source to the sink. We construct a p-commodity stochastic flow network with unreliable nodes, in which branches and nodes all have several possible capacities and may fail, to model a supply chain. Different types of commodities, transmitted through the same network simultaneously, consume the capacities of branches and nodes differently. That is, the capacity weight depends on branches, nodes and types of commodity. We first define the system capacity as a vector and propose a performance index, the probability that the upper bound of the system capacity is a given pattern. Such a performance index can be easily computed in terms of upper boundary states meeting the demand exactly. An efficient algorithm based on minimal cuts is thus presented to generate all upper boundary states. The manager can apply this performance index to measure the transportation level of a supply chain.

AB - For a single-commodity stochastic flow network, the system capacity is the maximum flow from the source to the sink. We construct a p-commodity stochastic flow network with unreliable nodes, in which branches and nodes all have several possible capacities and may fail, to model a supply chain. Different types of commodities, transmitted through the same network simultaneously, consume the capacities of branches and nodes differently. That is, the capacity weight depends on branches, nodes and types of commodity. We first define the system capacity as a vector and propose a performance index, the probability that the upper bound of the system capacity is a given pattern. Such a performance index can be easily computed in terms of upper boundary states meeting the demand exactly. An efficient algorithm based on minimal cuts is thus presented to generate all upper boundary states. The manager can apply this performance index to measure the transportation level of a supply chain.

KW - Capacity weight

KW - p-commodity stochastic flow networks

KW - Supply chain

KW - System capacity

KW - Unreliable node

UR - http://www.scopus.com/inward/record.url?scp=74549212451&partnerID=8YFLogxK

U2 - 10.1016/j.ijpe.2009.10.022

DO - 10.1016/j.ijpe.2009.10.022

M3 - Article

AN - SCOPUS:74549212451

VL - 124

SP - 181

EP - 187

JO - International Journal of Production Economics

JF - International Journal of Production Economics

SN - 0925-5273

IS - 1

ER -