Global Supply Chain Model Research Articles

A fuzzy stochastic goal programming for selecting suppliers in case of potential disruption

ABSTRACT Due to globalization and the new characteristics of the business, companies face various challenges to ensure their continuity and competitive advantages. COVID-19 pandemic can be an extreme event that will eventually force many businesses and all industries to redesign and transform their global supply chain model? Challenges concerning mainly reducing the operating cost which is based on selecting the optimal suppliers to provide a reliable product. This study contributes to solving a supplier selection problem under disruption risk due to the lack of literature reviews with a lack of multi-methodological perspective for the fuzzy stochastic notions and quantitative techniques for the quantification of risk alternatives. Prior studies are neglecting to consider the value of risk and prefer to discover chances for optimizing anticipated costs or profits. This study proposed a fuzzy stochastic goal programming approach for selecting the optimal supplier under disruption risk. The proposed model incorporates multiple criteria such as capacity, stochastic demand, and probability of disturbance. The problem of stochastic combinatorial optimization obtained is presented as a program of fuzzy random aim by integrating techniques of value at risk and conditional risk value. Numeric samples and calculation results are included. The results of the models help the decision-maker to optimize the selection of suppliers in the event of a disturbance risk problem by an estimated value at risk and by simultaneously minimizing the conditional value of the risk and demonstrate the efficacy and acceptability of the created risk-averse technique as well as the effects of risk factors on our model behavior.

Research on Global Supply Chain Model of Multinational Corporations Based on Global Production Network Theory--Apple Corporation as an Example

From the 20th century, with the development of manufacturing Industry, the concept of division of labor and globalization had become more and more important, manufacturing companies have formed a global production network based on the division of labor in the product value chain. As a well-known company, Apple has built a global supply chain based on this theoretical foundation, as a result, brought Apple huge commercial profits and increase its proportion in the market share. This paper analyzes how Apple flexibly uses the global production network to reduce its production costs and increase profits, as well as the problems that may appears by using this theory. The analysis show that Apple has become a leading company in the electronic technology industry by maximizing the use of global resources and high-precision production processes and techniques, giving it a discourse power of choosing manufacturers. At the same time, Chinese manufacturers are basically in the middle or lower level of Apple's supply chain, which can be most easily abandoned and replaced.

A Multi-objective Cross Entropy-based algorithm for sustainable global food supply chain with risk considerations: A case study

This paper proposes a sustainable global food supply chain model with risk considerations. Perishable foods begin to deteriorate after were produced. Therefore, without proper maintenance and transportation, the inventories may deteriorate quickly before be used which leads to unavoidable costs. The proposed model has four levels; suppliers, producers, warehouses and demand centers. The sustainable supply chain has three objectives, the first and second one is to reduce economic costs and environmental impacts, respectively and the third one is to maximize the level of employment in the chain. Also, because of nature of the supply chain, several risk factors are investigated in the model including: time delay risk, exchange rate fluctuations, raw material quality and production quality. For solving large instances, a Multi-Objective Cross Entropy (CE) algorithm is introduced. The proposed CE method is efficient in terms of its run time and low difference with the GAMS software. The MID and SM criteria which show the dispersion of the solutions are lower by CE method than the Epsilon constraint method. Also, a robust optimization approach is introduced to overcome the uncertainty. Also, a validation method is performed to evaluate the effectiveness of the robust approach. Then Sensitivity analysis is done to show capability of the model. Finally, the problem is applied for a food company in Iran and the city of Mashhad. The results show the establishment of a new factory in Qazvin lead to increase 2.8% of total costs, whereas decreasing 27.4% of CO2 emissions and increasing 44.2% of social benefits is resulted.

Modelling the impact of non‐tariff measures on supply chains in ASEAN

AbstractThis paper explores the impact of reducing non‐tariff measures (NTMs) in major ASEAN countries. New econometric estimates of the impact of different types of NTMs are used in a global supply chain model to separately model the effects on intermediate products and those sold to final consumers. We also distinguish between whether the NTM cost burden is directed at exporters or importers. This paper makes important advances in modelling the heterogeneity of NTMs, offering much richer policy analysis of the impact of NTMs on supply chains in the Asia‐Pacific region than has previously been possible. We illustrate the benefits, both to the major ASEAN countries and to their trading partners, from the partial liberalisation by ASEAN countries of their most trade distorting types of NTMs. Such liberalisation increases the GDP and welfare of all countries, with the effect particularly pronounced for the major ASEAN countries themselves, especially Vietnam and the Philippines. As trade in plant products and animal products is particularly affected by NTMs, these sectors show the largest expansion of trade.

The effect of carbon tariffs on global emission control: A global supply chain model

This paper investigates the effect of carbon tariffs on global emission control. We propose a global supply chain model consisting of a retailer in an emission-regulated country and supplier in a non-emission-regulated country. The equilibrium solutions are obtained, and the effects of a carbon tariff on global emission control are studied. Through analytical study and numerical study, we find that a carbon tariff does not necessarily reduce global emissions under certain circumstances. The paper discusses insights and the carbon tariff policy implications from this finding.

Investigation of Global Supply Chain Network Redesign

Many Japanese manufacturing companies are actively producing, selling, and trading through their overseas bases. Former Japanese companies designed strategies based on offshoring; that is, creating a global supply chain in which they set up production bases abroad to benefit from the cheap labor costs and rising demand in emerging countries. This strategy was instrumental in low-cost and competitive manufacturing. However, in recent years, there has been a change in the environment surrounding the supply chain, with rising labor costs in China, quality problems, and fluctuating exchange rates. In addition, due to the rising sophistication of consumer demand and the advancement of technology, among other factors, Japanese firms had to relocate their production bases. Thus, reshoring, by which the manufacturing industry returns to the domestic market, and nearshoring, by which the production base shifts to neighboring countries, are regarded as extremely important strategies. This study, which aims to support the determination of manufacturing allocation by multinational companies, proposes a global supply chain model consisting of offshoring, reshoring, and nearshoring. Moreover, we evaluate the influence of our variables on after-tax profit. Through simulated numerical experiments, we indicate both the strengths and weakness of each strategy.

India’s Horticultural Export Markets: Growth Rates, Elasticities, Global Supply Chains, and Policies

Digital Economy, Ecommerce and fortune economy depend on export market information. Globally, horticulture industry is one of the noteworthy sectors. India is major fruit and vegetable basket of the world. This study estimates exports, price growth rates, elasticity’s, identifies major destinations and trace global supply chains for horticultural commodities. The study period is 1990-1991 to 2012-2013. Compound annual growth rates, elasticities and instability index are the methodological tools employed. All fruits’, vegetables’ and flowers’ elasticities are shown to be elastic excluding walnut & mushrooms. Tea’s & Coffee’s elasticities are elastic. The supply chain channels to Europe, UK, US and Middle East highly developed and no middlemen involved. In case of South Asia, Africa and South East Asia, lengthy and middlemen involved. Global supply chain model must be connecting directly producers with exporters and importers or consumers of importing countries. This is possible digitalization of data and single window processing.

Design of a Global Closed-Loop Supply Chain Model

Design of a Global Closed-Loop Supply Chain Model

A quality integrated strategic level global supply chain model

This paper proposes a strategic global supply chain (GSC) model that integrates critical-to-quality (CTQ) issues along with other system-based quality requirements that allow a GSC to assure product quality and safety to the primary user, preventing expensive product recall. The proposed model ensures product quality and other critical-to-business (CTB) requirements for GSCs that operate in various, multi-layered, multi-location-based suppliers and manufacturing plants by first integrating a quality-based supply management (QSM) system to GSC operations. The QSM evaluates and affiliates prospective supplier plants to supply inputs based on their performance in CTQ and other crucial quality system-based attributes. The model then integrates a CTQ-based approval process for GSC-operated manufacturing facilities that also considers CTB and standard quality management system factors. Finally, the model provides a procedure for introducing a quality monitoring process for the continuous improvement of supplier plants, as well as GSC-operated plants in its overall strategic decision making process. A numerical example illustrates the model's application among suppliers, manufacturing systems and distribution systems in a global business space.

Exact and heuristic solutions of the global supply chain problem with transfer pricing

We examine the example of a multinational corporation that attempts to maximize its global after tax profits by determining the flow of goods, the transfer prices, and the transportation cost allocation between each of its subsidiaries. Vidal and Goetschalckx [Vidal, C.J., Goetschalckx, M., 2001. A global supply chain model with transfer pricing and transportation cost allocation. European Journal of Operational Research 129 (1), 134–158] proposed a bilinear model of this problem and solved it by an Alternate heuristic. We propose a reformulation of this model reducing the number of bilinear terms and accelerating considerably the exact solution. We also present three other solution methods: an implementation of Variable Neighborhood Search (VNS) designed for any bilinear model, an implementation of VNS specifically designed for the problem considered here and an exact method based on a branch and cut algorithm. The solution methods are tested on artificial instances. These results show that our implementation of VNS outperforms the two other heuristics. The exact method found the optimal solution of all small instances and of 26% of medium instances.

Minimisation of supply chain cost with embedded risk using computational intelligence approaches

Global supply chains are vulnerable towards different types of risks and are dynamically expanding with the increase in globalisation. Costs are associated with every risk factor that causes disturbances in the allocation of certain goods at the required place and time, and with the required quality and quantity. In this paper, we consider a multi-echelon global supply chain model, where raw material suppliers, manufacturers, warehouses and markets are located in different countries. The paper first identifies all types of operational risk factors, their expected value and probability of occurrence, and associated additional cost. Based on initial information for the risk factors, optimal decisions regarding the inter-echelon quantity flow in the supply chain are made for a single planning horizon. Then, with the change in the expected value of the risk factors, the intra-echelon shift of flow is determined in order to minimise the total cost and risk factors. Considering the complexity involved with the problem, various computational intelligence techniques such as genetic algorithms, particle swarm optimisation and artificial bee colony are applied in the solution evaluation phase. The results obtained using the developed model illustrate that the ability to react to changes in risk factors offers potential solutions to robust supply chain design.

A global supply chain model with transfer pricing and transportation cost allocation

We present a model for the optimization of a global supply that maximizes the after tax profits of a multinational corporation and that includes transfer prices and the allocation of transportation costs as explicit decision variables. The resulting mathematical formulation is a non-convex optimization problem with a linear objective function, a set of linear constraints, and a set of bilinear constraints. We develop a heuristic solution algorithm that applies successive linear programming based on the reformulation and the relaxation of the original problem. Our computational experiments investigate the impact of using different starting points. The algorithm produces feasible solutions with very small gaps between the solutions and their upper bound (UB).

Global Supply Chain Management at Digital Equipment Corporation

Digital Equipment Corporation evaluates global supply chain alternatives and determines worldwide manufacturing and distribution strategy, using the Global Supply Chain Model (GSCM) which recommends a production, distribution, and vendor network. GSCM minimizes cost or weighted cumulative production and distribution times or both subject to meeting estimated demand and restrictions on local content, offset trade, and joint capacity for multiple products, echelons, and time periods. Cost factors include fixed and variable production charges, inventory charges, distribution expenses via multiple modes, taxes, duties, and duty drawback. GSCM is a large mixed-integer linear program that incorporates a global, multi-product bill of materials for supply chains with arbitrary echelon structure and a comprehensive model of integrated global manufacturing and distribution decisions. The supply chain restructuring has saved over $100 million (US).