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Allocation Model and Algorithm of Supply Chain?s Reliability

Guohua Chen, Yarui Zhang, Jihong Pang

Abstract


System reliability allocation is a significant and important issue for the successful operation of supply chain. Borrowing ideas from reliability allocation method of machinery parts, this paper constructed an estimated cost function of supply chain?s reliability based on the properties of reliability cost function in reliability engineering. Hereafter, the methods of how to determine these parameters in the estimated cost function were developed according to the structure reliability theory of supply chain. Then the reliability allocation model of supply chain was established, and from the differential nature between supply chain?s reliability and cost, the gradually iterative algorithm, taking the bottom event with the greatest importance as the search direction, was constructed. The algorithm presented in the paper is simple and easy to use. Lastly, an example was presented to prove the feasibility and validity of the model and algorithm.

Keywords


supply chain, reliability, allocation model, algorithm.

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