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| Title | Cost-Effective Strategy to Mitigate Transportation Disruption in Supply Chain |
| Edition | |
| Call Number | 2017/17 |
| ISBN/ISSN | |
| Author(s) | Albertzeth, Gustav |
| Subject(s) | Logistic SUPPLY CHAIN MANAGEMENT |
| Classification | 658.7 Alb c |
| Series Title | GMD | Tesis |
| Language | Inggris |
| Publisher | Departemen Teknik Industri FTI-ITS |
| Publishing Year | 2017 |
| Publishing Place | Surabaya |
| Collation | |
| Abstract/Notes | 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. |
| Specific Detail Info | Transportation disruption, mitigation strategy, redundant stock, flexible route, simulation modeling, cost-effectiveness analysis |
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| File Attachment | LOADING LIST... |
| Pembimbing | Prof. Ir. I Nyoman Pujawan, M.Eng., Ph.D., CSCP |
| Volume | |
| Availability | LOADING LIST... |
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