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Design of supply chain network to reduce impacts of damages during shipping
Abushaega, Mastoor M. Daehy, Yahya H. Alghamdi, Saleh Yahya Krishnan, Krishna K. Khamaj, Abdulrahman
Abushaega, Mastoor M.
Daehy, Yahya H.
Alghamdi, Saleh Yahya
Krishnan, Krishna K.
Khamaj, Abdulrahman
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Issue Date
2021-06-01
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Article
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Keywords
Closed loop supply chain,Damage recovery scenarios,Supply chain network,Type I and type II errors
Subjects (LCSH)
Citation
Abushaega, M. M., Daehy, Y. H., Alghamdi, S. Y., Krishnan, K. K., & Khamaj, A. (2021). Design of supply chain network to reduce impacts of damages during shipping. Management and Production Engineering Review, 12(2), 17-26. doi:10.24425/mper.2021.137674
Abstract
Recently, the expand of industrial market has led to have long supply chain network. During the long shipment, the probability of having damaged products is likely to occur. The probability of having damaged products is different between stages and that could lead to higher percentage of damaged products when arrived at retailers. Many companies have rejected the entire shipment because the damaged product percentage was higher than that agreed on. Decision-makers have tried to reduce the percentage of damaged products that happened because the transit, loading unloading the shipment, and natural disasters. Companies started to implement recovery centers in the supply chain network in order to return their system steady statues. Recovery models have been developed in this paper to reduce the damaged percentage at minimum costs to do so. Results show that the possibility of implementing an inspection unit and a recovery centers in the system before sending the entire shipment to the retailer based on examining a sample size that has been selected randomly from the shipment and the minimum cost of committing type I and type II errors. Designing a methodology to minimize the total cost associated with the supply chain system when there is a possibility of damage occurring during shipping is the objective of this research.
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© 2021 The Author(s). This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
Publisher
Polska Akademia Nauk
Journal
Book Title
Series
Management and Production Engineering Review;Vol. 12, Iss. 2
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ISSN
20808208