Abstract: It is difficult to generate the new plan effectively for minimizing the negative impact when the time window of customer changes in logistic distribution. Based on disruption management, this research aims to improve the science of the decision making of disruption management in logistic distribution by combining the behavioral perception in prospect theory with the quantitative analysis in operations research. At the beginning, the method to measure the deviation based on prospect theory is studied by analyzing the effects of the change of time window on customers, logistics providers and drivers. Then, the multi-objective model of disruption management is constructed and an improved ant colony optimization is demonstrated. The computational result of the model proves that, due to the tradeoff between all parties involved in logistic distribution, our approach is more practical than global rescheduling and local rescheduling. This research contributes to the theory and method of disruption management, which can be used in other fields, such as production planning problems, flight scheduling, supply chain management, etc.

Key words: management engineering, logistic distribution, disruption management, prospect theory, multi-objective optimization