Effect of Material Prices for Global Supply Chain Network with Trans-Pacific Partnership

Nakamura, K.; Ijuin, Hiromasa; Yamada, Tetsuo; Ishigaki, Aya; Inoue, Masatoshi

doi:10.1109/iiai-aai.2017.159

Cited by 3 publications

(9 citation statements)

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“…Among the triple bottom line of sustainable development, two aspects of economic and social responsibility such as customs duty and Brexit are considered. The supply chain network is modeled and extended based on previous studies (Urata et al, 2017;Nakamura et al, 2018) and formulated using mixed integer programming (Salvendy, 1982). Additionally, a bill of materials (BOM) of a product example used for the experiments is prepared using 3D-CAD (Inoue et al, 2014) and an industry census.…”

Section: Supply Chain Network For Asian Manufacturersmentioning

confidence: 99%

“…modeled a global supply chain network evaluating supplier and factory selection, and formulated total costs including transportation cost, procurement cost of parts, and factory opening costs. However, their model cannot analyze the effect of Brexit because it did not consider the customs duty Nakamura et al (2018). modeled a global supply chain network with customs duty based onUrata et al (2017).…”

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confidence: 99%

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The impact of Brexit on designing a material-based global supply chain network for Asian manufacturers

Nakamura

Yamada

Tan

2019

MEQ

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Purpose The purpose of this paper is to investigate effects on global supply chain reconfigured in the customs duty rate of parts and specific material types brought about by Brexit and the Trans-Pacific Partnership (TPP). Design/methodology/approach The supply chain network is modeled and formulated using mixed integer programming. Numerical experiments are conducted using bill of materials with information such as the procurement cost of each part, 3D-CAD and an industry census. Findings The experiments indicates that if the customs duty rate increases by Brexit, manufacturers would be necessary to restructure supply chain configuration and locate the domestic factory and market. Additionally, when the UK leaves the EU and joins the TPP, there is a case where the total cost decreases in the global supply chain network compared to the baseline without Brexit. Therefore, it is reasonable for the UK to join the TPP. Practical implications The study shows how new trading rules from non-partnership countries can critically disrupt existing global supply chain equilibrium. Asian manufacturers should evaluate a move to more local sourcing, opening new facilities and setting up warehouses to stock finished goods or raw materials in different trading areas to overcome any barriers to the goods movement. Originality/value This study enables us to quantitatively evaluate what there are opportunities or cost increasing risks by the selection of supply chain configuration for Asian manufacturers by political and economic factors of each country, such as Brexit and participation in TPP.

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Section: Supply Chain Network For Asian Manufacturersmentioning

confidence: 99%

mentioning

confidence: 99%

The impact of Brexit on designing a material-based global supply chain network for Asian manufacturers

Nakamura

Yamada

Tan

2019

MEQ

Self Cite

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“…As in [20], this study models the global supply chain network with the customs duty on the assembled products based on [7] [10], as shown in Figure 1. The territories of each country are filled on the figure.…”

Section: Notationsmentioning

confidence: 99%

“…As in [20], the unit transportation cost, LCla, is obtained by multiplying the distance dla between supplier l and factory a with the transportation cost coefficient αj, as shown in Eq. (2).…”

Section: Formulationmentioning

confidence: 99%

“…This study analyzes the influence of fluctuating material prices on a global supply chain network under TPP by considering the applicability of relevant customs duty rates. First, the global supply chain network with customs duty is modeled by using previous studies [10] [19] [20]. Next, the model is formulated with integer programming [21].…”

Section: Introductionmentioning

confidence: 99%

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Design and Analysis of Global Supply Chain Network with Trans-Pacific Partnership under Fluctuating Material Prices

Nakamura

Ijuin

Yamada

et al. 2019

International Journal of Smart Computing and Artificial Intelligence

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Manufacturing firms are becoming more global and forming global supply chain networks in their pursuit of lower production costs and emerging markets including those in Asia. The global supply chain network consists of domestic as well as international suppliers, factories, and markets. Then, the supply chain network applies customs duties when parts and products are transported across overseas borders. In addition, awareness about several cross-border treaties such as regional free trade agreements (FTAs) and the Trans-Pacific Partnership (TPP), is indispensable when designing a global supply chain network. The current fluctuations in oil and energy price also cannot be ignored.This study analyzes the effect of fluctuating material prices on the global supply chain network under customs duty rates and the TPP regime. First, the global supply chain network with customs duty and TPP is modeled. Next, the model is formulated with integer programming. Finally, sensitivity analysis is conducted in order to investigate the effect on the global supply chain network of the fluctuations in material prices.

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Closing the loop of a global supply chain through a robust optimal decentralized decision support system

Golpîra

2022

Environ Sci Pollut Res

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This paper proposes an original risk-based robust mixed-integer linear programming to global closed-loop supply chain network design based on a novel, uncertain, bi-level programming model. The results show that using the proposed approach significantly improves the solution robustness so that the standard deviation of profit, income, and cost is reduced by about 28%, 34%, and 36% on average. However, a more conservative DM, compared to an optimistic DM, faces more income cuts to achieve greater robustness. As far as the managerial implications are concerned, this research can assist the DM in identifying essential trade-offs among risk, cost, profit, income, robustness, and leanness regarding its attitude toward risk. Because a similar change in the level of risk-taking of the DM does not necessarily have the same economic consequences for pessimistic and optimistic DMs. In addition, the proposed decentralized structure dramatically improves the leanness of the network, especially for a pessimistic DM.

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Effect of Material Prices for Global Supply Chain Network with Trans-Pacific Partnership

Cited by 3 publications

References 7 publications

The impact of Brexit on designing a material-based global supply chain network for Asian manufacturers

The impact of Brexit on designing a material-based global supply chain network for Asian manufacturers

Design and Analysis of Global Supply Chain Network with Trans-Pacific Partnership under Fluctuating Material Prices

Closing the loop of a global supply chain through a robust optimal decentralized decision support system

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