Logistical network design with robustness and complexity considerations

Purpose - This paper aims to propose a logistical network design framework with robustness and complexity considerations.Design methodology approach - The paper defines robustness, complexity, and normalised efficiency of a logistical network. A mathematical model is then constructed based on the co...

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Bibliographic Details
Published in:International journal of physical distribution & logistics management Vol. 37; no. 3; pp. 201 - 222
Main Authors: Meepetchdee, Yongyut, Shah, Nilay
Format: Journal Article
Language:English
Published: Bradford Emerald Group Publishing Limited 24.04.2007
Subjects:
Complexity theory
Costs
Decision making
Design specifications
Earthquakes
Efficiency
Integer programming
Inventory
Linear programming
Logistics
Manufacturing
Market shares
Mathematical modelling
Mathematical models
Network topologies
Network topology
Production capacity
Profits
Proposals
Studies
Supply chain management
Warehouses
Supply chain management
Mathematical modelling
Network topology
Complexity theory
ISSN:0960-0035, 1758-664X
Online Access:Get full text
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Summary:Purpose - This paper aims to propose a logistical network design framework with robustness and complexity considerations.Design methodology approach - The paper defines robustness, complexity, and normalised efficiency of a logistical network. A mathematical model is then constructed based on the conceptual framework and applied to a hypothetical case study with varying robustness requirements. The mathematical model is formulated as an Mixed-Integer Linear Programming problem. Furthermore, the paper introduces a graph-theoretic view of the logistical network and presents its topological properties such as average path length, clustering coefficient, and degree distribution.Findings - The results show that logistical network configurations can be obtained with desirable robustness levels whilst minimising cost. The relationships of robustness versus normalised efficiency and complexity are also presented. The results show that relationships between logistical network topological properties and robustness exist, as in other real world natural and man-made complex networks.Practical implications - Logistical network design is one of the earliest strategic decisions in supply chain management that supply chain managers have to make. Practitioners and researchers typically focus on optimising efficiency and or responsiveness of logistical networks. It is argued that logistical network designers should also consider robustness and complexity as they are important characteristics of logistical network functionality. The logistical network design frame work successfully incorporates robustness and complexity into design considerations.Originality value - This paper newly introduces other important performance measures, robustness and complexity, into the logistical network design objective. The design framework is highly relevant and adds value to logistical network designers and managers.
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ISSN:0960-0035
1758-664X
DOI:10.1108/09600030710742425