Towards a secure two-stage supply chain network: A transportation-cost approach

Abstract

The robustness, resilience and security of supply chain transportation is an active research topic, as it directly determines the overall supply chain resilience and security. In this paper, we propose a theoretical model for the transportation problem within a two-stage supply chain network with security constraints called the Secure Supply Chain Network (SSCN). The SSCN contains a manufacturer, directly connected to several distribution centres DC, which are directly connected to one or more customers C. Each direct link between any two elements of Secure Supply Chain Network is allocated a transportation cost. Within the proposed model, the manufacturer produces a single product type; each distribution centre has a fixed capacity and a security rank. The overall objective of the Secure Supply Chain Network is 100% customer satisfaction whilst fully satisfying the security constraints and minimizing the overall transportation costs. A heuristic solving technique is proposed and discussed.