Design of supply chain network to reduce impacts of damages during shipping
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.
Description
Thesis (M.S.)--Wichita State University, College of Engineering, Dept. of Industrial and Manufacturing Engineering