Abstract
In this paper, we study the design of global facility networks. We present a mixed integer programming model that captures essential design tradeoffs of such networks and explicitly incorporates government subsidies trade tariffs and taxation issues. The resulting formulation can be solved for reasonable size problems with commercially available mathematical programming software. Focusing on special cases of the problem enables us to provide useful insights on preferable international facility networks for various environments. We demonstrate the pervasive, and often dominating, effects of subsidized financing, tariffs, regional trade rules, and taxation in shaping the manufacturing and distribution network of global firms.
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© 2002 Kluwer Academic Publishers
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Kouvelis, P., Rosenblatt, M.J. (2002). A Mathematical Programming Model for Global Supply Chain Management: Conceptual Approach and Managerial Insights. In: Geunes, J., Pardalos, P.M., Romeijn, H.E. (eds) Supply Chain Management: Models, Applications, and Research Directions. Applied Optimization, vol 62. Springer, Boston, MA. https://doi.org/10.1007/0-306-48172-3_10
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DOI: https://doi.org/10.1007/0-306-48172-3_10
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4020-0487-2
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