Global supply chain network design problem with rules of origin and limited import quotas

This paper aims to develop an uncertain global supply chain network design (GSCND) model with rules of origin (RoOs) and limited import quotas, and to discuss the international factors’ effects on location decisions.,The authors establish an uncertain GSCND model with the international factors. The transportation costs and customers’ demands are characterized as random variables. To deal with the risk of uncertainty, the authors introduce the customers’ demand service level. A sample approximation approach (SAA) is used to deal with the service level constraint and turn the proposed model into a mixed integer programming. On the basis of the properties of the proposed model, a hybrid memetic algorithm (MA) is designed to solve it.,The authors find that the proposed MA is efficient to the real supply chain network design problem. Besides, the RoOs and limited import quotas can affect the optimal choices of plant and distribution center locations.,The authors propose an uncertain GSCND model with RoOs and limited import quotas. An MA with SAA is designed to solve the proposed model. The authors apply the proposed model into a real global supply chain of an apparel corporation in East Asia, and give some managerial insights.

[1]  Pierre Hansen,et al.  Exact and heuristic solutions of the global supply chain problem with transfer pricing , 2010, Eur. J. Oper. Res..

[2]  Vedat Verter,et al.  Global manufacturing strategy , 1995 .

[3]  Estéfany Flórez Orrego Modelo de reabastecimiento colaborativo entre una empresa y sus filiales internacionales , 2020 .

[4]  Yankui Liu,et al.  Designing fuzzy supply chain network problem by mean-risk optimization method , 2015, J. Intell. Manuf..

[5]  James E. Hodder,et al.  International plant location under price and exchange rate uncertainty , 1985 .

[6]  Yang-Ming Chang,et al.  A welfare analysis of tariffs and equivalent quotas under demand uncertainty: Implications for tariffication , 2011 .

[7]  Arnd Huchzermeier,et al.  Valuing Operational Flexibility Under Exchange Rate Risk , 1996, Oper. Res..

[8]  Georgios K. D. Saharidis,et al.  A new model to mitigating random disruption risks of facility and transportation in supply chain network design , 2014 .

[9]  Ioannis Minis,et al.  A new model for designing sustainable supply chain networks and its application to a global manufacturer , 2017 .

[10]  Philipp J. H. Schröder,et al.  Effects of Tariffication: Tariffs and Quotas under Monopolistic Competition , 2007 .

[11]  Manish Bachlaus,et al.  Designing an integrated multi-echelon agile supply chain network: a hybrid taguchi-particle swarm optimization approach , 2008, J. Intell. Manuf..

[12]  Mostafa Zandieh,et al.  Robust bi-level optimization for green opportunistic supply chain network design problem against uncertainty and environmental risk , 2017, Comput. Ind. Eng..

[13]  Mohsen Akbarpour Shirazi,et al.  Designing and planning a multi-echelon multi-period multi-product closed-loop supply chain utilizing genetic algorithm , 2013 .

[14]  Meir J. Rosenblatt,et al.  THE IMPACT OF LOCAL CONTENT RULES ON GLOBAL SOURCING DECISIONS , 1997 .

[15]  Adolf Acquaye,et al.  Measuring the environmental sustainability performance of global supply chains: A multi-regional input-output analysis for carbon, sulphur oxide and water footprints. , 2017, Journal of environmental management.

[16]  J. Mentzer,et al.  Global supply chain risk management strategies , 2008 .

[17]  Timothy J. Lowe,et al.  Screening location strategies to reduce exchange rate risk , 2002, Eur. J. Oper. Res..

[18]  Govindan Kannan,et al.  Incorporating risk measures in closed-loop supply chain network design , 2014 .

[19]  Michael Gasiorek,et al.  The Impact of Rules of Origin on Trade Flows , 2005 .

[20]  Mark Goh,et al.  Production , Manufacturing and Logistics A stochastic model for risk management in global supply chain networks , 2007 .

[21]  Mark J. Roberts,et al.  Measuring quality change in quota-constrained import markets: The Case of U.S. Footwear , 1986 .

[22]  Kala Krishna,et al.  Firm Behaviour and Market Access in a Free Trade Area with Rules of Origin , 2005 .

[23]  Anna Nagurney,et al.  Dynamics of global supply chain supernetworks , 2003 .

[24]  Sangmi Chai,et al.  The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective , 2017 .

[25]  Mary J. Meixell,et al.  Global supply chain design: A literature review and critique , 2005 .

[26]  Volume and share quotas in Cournot competition , 2015 .

[27]  Jack Barry,et al.  Supply chain risk in an uncertain global supply chain environment , 2004 .

[28]  A. Mattoo,et al.  The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined? , 2002 .

[29]  M. Cemal Dincer,et al.  A multifactor model for international plant location and financing under uncertainty , 1986, Comput. Oper. Res..

[30]  Sridhar Seshadri,et al.  Plant location and inventory level decisions in global supply chains: Evidence from Korean firms , 2017, Eur. J. Oper. Res..

[31]  Saman Hassanzadeh Amin,et al.  A facility location model for global closed-loop supply chain network design , 2017 .

[32]  Donald B. Rosenfield,et al.  Global and variable cost manufacturing systems , 1996 .

[33]  Amirhossein Khosrojerdi,et al.  Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study , 2016 .

[34]  S. Pouliot,et al.  Import sensitive products and perverse tariff-rate quota liberalization: Import sensitive products , 2012 .

[35]  Yue Wu A time staged linear programming model for production loading problems with import quota limit in a global supply chain , 2010, Comput. Ind. Eng..

[36]  Kai Yang,et al.  Multi-objective biogeography-based optimization for supply chain network design under uncertainty , 2015, Comput. Ind. Eng..

[37]  Francisco Saldanha-da-Gama,et al.  Facility location and supply chain management - A review , 2009, Eur. J. Oper. Res..

[38]  Desheng Dash Wu,et al.  A review of enterprise risk management in supply chain , 2010, Kybernetes.

[39]  Import quota allocation between regions under Cournot competition , 2015 .

[40]  Marc Goetschalckx,et al.  A global supply chain model with transfer pricing and transportation cost allocation , 2001, Eur. J. Oper. Res..

[41]  Kazunobu Hayakawa,et al.  Exchange rate and utilization of free trade agreements: Focus on rules of origin , 2017 .

[42]  N. D. Palmeter Rules of Origin or Rules of Restriction? A Commentary on a New Form of Protectionism , 1987 .