COVID-19 Disruption Strategy for Redesigning Global Supply Chain Network across TPP Countries

Abstract

Background: COVID-19 has disrupted and adversely affected supply chains worldwide. A global supply chain network that considers disruptions is needed. This study strategically analyzes the economic and structural effects of disruption on a global supply chain network with customs duty and the trans-pacific partnership (TPP) agreement. Methods: We present a cost minimization model which helps in understanding the difficulty of supplying materials or products to factories or customers if the supplier’s cities are facing disruption. This enables us to model and evaluate simultaneous considerations of supplier disruption, customs duty, and TPP in redesigning a global supply chain network. This network is modeled and formulated using integer programming, disruption scenarios, and a sensitivity analysis for customs duty. Results: Regarding the impact of disruptions on suppliers, two patterns emerge in the reconfigured network: direct changes due to supplier disruptions and indirect changes due to factory relocation. The sensitivity analysis for customs duty shows that the TPP has a positive impact on cost maintained, even in the presence of disruptions. Conclusions: Suppliers should be switched depending on the scale of disruption; when many distant suppliers need to be switched, the factory should be relocated to the country where these suppliers are located.

Modeling Carbon Border Tax for Material-Based GHG Emission and Costs in Global Supply Chain Network

“…In this section, in order to analyze CBA on a global supply chain network, the model and the formulation for numerical experiments are described. Section 2.1 develops the global supply chain model with CBA based on the previous study [8]. In Sect.…”

“…The global supply chain model is developed based on Nagao et al [8] with a global supply chain model with customs duty and Trans Pacific Partnership (TPP), which is a comprehensive Free Trade Agreement (FTA). In the model, the product consists of N j type parts.…”

“…It is noted that this proposed model is assumed for the strategic planning stage of CBA scheme, where a just-in-time environment is applied similar to Nagao et al [8], which represents fewer inventory operations [10]. Thus, inventory control with lead time is out of scope in this study.…”

“…Kondo et al [7] analyzed the supplier selections considering GHG emission, and quantitatively showed whether there is a carbon leakage on global supply chain through numerical experiments. Nagao et al [8] analyzed the impact of disruption for costs on a global supply chain network. However, the CBA based on GHG emission is not considered through modelling of the global supply chain network.…”

A Framework on the Use of Agile Methods in Logistics Startups

“…No longer is money made from the pure transport, handling and storage of goods, but also from a more information-oriented approach [6]. Information technology is becoming a decisive competitive factor, as it enables speed, flexibility and transparency of logistics processes [7][8][9].…”