Cost-Effective Strategy to Mitigate Transportation Disruption in Supply Chain

Albertzeth, Gustav (2017) Cost-Effective Strategy to Mitigate Transportation Disruption in Supply Chain. Masters thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Fenomena disrupsi dalam rantai pasok telah banyak diminati para peneliti. Meskipun transportasi memainkan peran sentral dalam rantai pasok, studi tentang disrupsi transportasi hanya mendapat sedikit perhatian. Penelitian ini mensimulasikan proses pengiriman pesanan dari perusahaan yg di amati (focal company - FC) ke distributor tunggal, dimana terjadi disrupsi transportasi secara stokastik. Mengingat adanya kemungkinan kehilangan penjualan selama disrupsi terjadi, kami menawarkan redundant stock, flexible route, dan gabungan redundancy-flexibility (ReFlex) sebagai strategi mitigasi dan base case sebagai strategi penerimaan risiko. Tujuannya adalah untuk mengetahui strategi terbaik yg menunjukkan efektivitas biaya terhadap disrupsi transportasi. Pada base case, proses pengiriman dihentikan selama masa disrupsi dan dilanjutkan begitu jalan telah diperbaiki. Pada redundant stock, FC menempatkan persediaan tambahan di gudang distributor yang bertindak sebagai penyangga terhadap stockouts. Pada flexible route, FC menggunakan jalur alternatif untuk proses pengiriman hanya saat terjadi disrupsi. Pada ReFlex, ketika terjadi disrupsi, tidak hanya rute alternatif yang diambil, tapi persediaan tambahan di gudang distributor juga ditempatkan sebagai perlindugan terhadap stockouts. Kami menjalankan model simulasi dengan menggunakan strategi-strategi ini kepada 5 merek. Kami menemukan bahwa strategi mitigasi yang diusulkan memiliki kemampuan untuk mengurangi dampak disrupsi transportasi, masing-masing dengan biaya dan efektivitasnya sendiri, sementara penerimaan risiko pada base case menyebabkan kerugian terbesar. Kami menemukan bahwa redundant stock memberikan keefektifan terbaik dalam menanggulangi disrupsi pada semua merek, ReFlex sebagai yang terbaik kedua, sementara rute yang fleksibel memberi sedikit efektivitas. Kami juga menemukan melalui analisis sensitivitas bahwa ReFlex berpotensi menjadi pilihan terbaik dengan melalui peningkatan jumlah persediaan penyangga. Akhirnya, melalui analisis efektivitas biaya (cost-effectiveness analysis - CEA) kami memberikan rekomendasi mengenai strategi mana yang harus diterapkan berdasarkan keinginan pembuat keputusan untuk membayar. ================================================================= Phenomena of disruption events in supply chain have gained many attractions by scholars. Even though transportation plays a central role in supply chain, studies in transportation disruption has received little attention. This research simulates a model of order delivery process from a focal company (FC) to a single distributor, where a transportation disruption stochastically occurs. Considering the possibility of sales loss during the disruption duration, we proposed a redundant stock, flexible route, and combined flexibility-redundancy (ReFlex) as mitigation strategies and a base case as a risk acceptance strategy. The objective is to find out the best strategy that promote cost-effectiveness against transportation disruption. In the base case, delivery process was halt during the disruption duration and resumed as soon as the road has been fixed. In the redundant stock situation, FC placed an extra stock in distributor’s warehouse that act as a buffer against stockouts. In flexible route, FC use an alternative route for the delivery process only when disruption occurred. In ReFlex, when disruption occurs, not only that alternative route was taken, but also an extra stock in distributor’s warehouse was placed to protect against stockouts. We ran the simulation model using these strategies for 5 brands. We found that the proposed mitigation strategies were having the capability to negate the impact of transportation disruption, each with its own cost and effectiveness, while accepting the risk caused the greatest loss. We found that redundant stock gave the best effectiveness against disruption for all brands, ReFlex as the second best, while flexible route gave the least effectiveness. We also found through sensitivity analysis that ReFlex has the potential to become the best option with buffer stock quantity improvement. Finally, through cost-effectiveness analysis (CEA) we gave recommendations of which strategy should be applied based on the decision maker willingness to pay.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Transportation disruption, mitigation strategy, redundant stock, flexible route, simulation modeling, cost-effectiveness analysis
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions: Faculty of Industrial Technology > Industrial Engineering > (S2) Master Theses
Depositing User: Albertzeth Gustav
Date Deposited: 05 Oct 2017 02:16
Last Modified: 08 Mar 2019 04:08
URI: http://repository.its.ac.id/id/eprint/45711

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