Abstract

Free Trade Zone (FTZ) is a special economic zone that an international businesses can apply to optimize its supply network. Before international businesses apply FTZs, they need to consider the cargo-flows between their business partners in industrial parks. In this research, we develop an economics evaluation model for the international business using the FTZs. At first, the cargo-flows are analyzed. Then, these cargo-flows are modeled by the mixed integer linear programming (MILP) approach. An application of air-cargo FTZ in Taiwan is given to illustrate the applicability of this model. International businesses can utilize this model to evaluate the efficiency and effectiveness of their supply networks using the FTZs and industrial parks.

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