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d
S 1 , 1
S 1 , 2
1
C 1
A 1
B 1
R 1
g
a
c
f
b
e
Fig. 15.2 Supply chain network topology for the illustrative numerical example
c a fðÞ¼ 3 f a þ 2 f a ,
c b fðÞ¼f b þ 3 f b ,
c c fðÞ¼ 2 f c þ f c ,
c d fðÞ¼ 4 f d þ 3 f d ,
c e fðÞ¼ 7 f e þ 5 f e ,
^
^
c f f f ¼ f f þ 4 f f ,
c g f g ¼ 3 f g þ 2 f g :
^
^
There are two paths in this network defined as: p 1 ( a , b , c , d , f , g ) and p 2 ( a , b ,
c , e , f , g ). The set of paths, P , is identical to the set of paths connecting the origin 1 to
the destination, R 1 , i.e., P R 1 , where
P¼P R 1 ¼
f
p 1 ;
p 2
g:
The demand for the relief item at the demand point followed a uniform distribu-
tion on the interval [5,10]; therefore,
the probability distribution function of
demand at the demand point is:
v R 1 5
10 5 ¼
x p 1 þ x p 2 5
5
P R 1 v R ðÞ¼
:
The unit shortage and surplus penalties were: λ R 1 ¼ 5000 and λ R 1 ¼ 100.
The organization is interested in the pre-positioning strategy; i.e., it wishes
to determine the amount of the relief item that should be stored beforehand.
Thus, the organization will only ship the pre-positioned supplies of relief goods
and will not procure post the disaster. Consequently, the completion time on links
a , b , and c (procurement, transportation, and storage) is set to zero:
˄ a f ðÞ¼˄ b f ðÞ¼˄ c
f ðÞ¼ 0
:
The completion time functions on the rest of the links were:
˄ d f ðÞ¼ 9 f d þ 6,
˄ e f ðÞ¼ 2 f e þ 2,
˄ g f g ¼ 5 f g þ 4
˄ f f f ¼ 1
:
5 f f þ 2,
:
The target time at demand point R 1 was 72 h:
T R 1 ¼ 72,
8p
∈P R 1 :
The decision-maker assigned a higher tardiness penalty to p 2 in that the
expectation of on-time delivery from the path with the air transportation link was
higher, so the tardiness penalty function at the demand point was:
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