Design of international assembly systems and their supply chains under North American Free Trade Area

Design of international assembly systems and their supply chains under North American Free Trade Area

0.00 Avg rating0 Votes
Article ID: iaor20063005
Country: United Kingdom
Volume: 41
Issue: 6
Start Page Number: 467
End Page Number: 493
Publication Date: Nov 2005
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors: , , , , ,
Keywords: programming: integer
Abstract:

The purpose of this paper is to provide a decision support aid for the strategic design of an assembly system in the international business environment created by NAFTA. The strategic design problem is to prescribe a set of facilities, including their locations, technologies, and capacities, as well as strategic aspects of the supply chain: selecting suppliers; locating distribution centers; planning transportation modes; and allocating target levels (i.e., amounts) for production, assembly, and distribution. The objective is to maximize after-tax profits. This paper presents a mixed integer programming model that represents the complexities of the international design problem as well as relevant enterprise-wide decisions in the US–Mexico business environment under NAFTA. It deals with a broad set of design issues (e.g., bill-of-material restrictions, international financial considerations, and material flow through the entire supply chain) using effective modeling devices (e.g., linearizing non-linearities that arise in modeling transfer prices and allocating transportation charges). Examples demonstrate how managers might use the model as a decision support aid.

Reviews

Required fields are marked *. Your email address will not be published.