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Global supply chain network design problem with rules of origin and limited import quotas

Xinxuan Cheng (School of Management, Hebei University, Baoding, China)
Guoqing Yang (School of Management, Hebei University, Baoding, China)
Longfei Fan (School of Management, Hebei University, Baoding, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 27 April 2018

Issue publication date: 2 May 2019

521

Abstract

Purpose

This paper aims to develop an uncertain global supply chain network design (GSCND) model with rules of origin (RoOs) and limited import quotas, and to discuss the international factors’ effects on location decisions.

Design/methodology/approach

The authors establish an uncertain GSCND model with the international factors. The transportation costs and customers’ demands are characterized as random variables. To deal with the risk of uncertainty, the authors introduce the customers’ demand service level. A sample approximation approach (SAA) is used to deal with the service level constraint and turn the proposed model into a mixed integer programming. On the basis of the properties of the proposed model, a hybrid memetic algorithm (MA) is designed to solve it.

Findings

The authors find that the proposed MA is efficient to the real supply chain network design problem. Besides, the RoOs and limited import quotas can affect the optimal choices of plant and distribution center locations.

Originality/value

The authors propose an uncertain GSCND model with RoOs and limited import quotas. An MA with SAA is designed to solve the proposed model. The authors apply the proposed model into a real global supply chain of an apparel corporation in East Asia, and give some managerial insights.

Keywords

Acknowledgements

This work was supported by The Key Projoct of The National Social Sciences Fund of China (No. 14AGJ013).

The authors declare no conflict of interest.

Citation

Cheng, X., Yang, G. and Fan, L. (2019), "Global supply chain network design problem with rules of origin and limited import quotas", Kybernetes, Vol. 48 No. 5, pp. 930-948. https://doi.org/10.1108/K-10-2017-0394

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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