The Impact of Transportation Disruptions on Supply Chain Performance
operations - traffic, operations - performance, organisation - performance, organisation - management
Warehouses, Vendor managed inventory, Transportation operations, Transportation disruptions, System dynamics, Supply chain management, Suppliers, Shipments, Shipment of goods, Retail trade, Performance measurement, Inventory, Inventories, Goods movement, Freight traffic
This paper investigates the effect of a transportation disruption on supply chain performance using system dynamics simulation, comparing a traditional supply chain and a vendor managed inventory system (VMI) when a transportation disruption occurs between 2 echelons in a 5-echelon supply chain. The greatest impact occurs when transportation is disrupted between the tier 1 supplier and warehouse. In the traditional structure the retailer, warehouse, and tier 1 supplier experience the greatest inventory fluctuations and the highest goods in transit to their facilities. These impacts are less severe for the VMI structure, although unfilled orders are approximately the same for each.
Wilson, Martha, (2007). The Impact of Transportation Disruptions on Supply Chain Performance. Transportation Research Part E: Logistics and Transportation Review, Volume 43, Issue 4, pp 295-320.