Reliability assessment of a multistate freight network for perishable merchandise with multiple suppliers and buyers

ABSTRACT This study develops a multistate freight network for single and perishable merchandise to assess the freight performance, where a node denotes a supplier, a distribution centre, or a buyer, while a logistics company providing a freight traffic service is denoted by an edge. For each logistics company, carrying capacity should be multistate since partial capacity may be reserved by some customers. The merchandise may perish or be perished during conveyance because of disadvantageous weather or collision in carrying such that the number of intact cargoes may be insufficient for the buyers. Hence, according to the perspective of supply chain management, the reliability, a probability of the network to successfully deliver the cargoes from the suppliers to the buyers subject to a budget, is proposed to be a performance index, where the suppliers and buyers are not the previous customers. An algorithm in terms of minimal paths to assess the reliability is developed. A fruit logistics case is adopted to explore the managerial implications of the reliability using sensitivity analysis.