IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v41y2005i6p467-493.html
   My bibliography  Save this article

Design of international assembly systems and their supply chains under NAFTA

Author

Listed:
  • Wilhelm, Wilbert
  • Liang, Dong
  • Rao, Brijesh
  • Warrier, Deepak
  • Zhu, Xiaoyan
  • Bulusu, Sharath

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.

Suggested Citation

  • Wilhelm, Wilbert & Liang, Dong & Rao, Brijesh & Warrier, Deepak & Zhu, Xiaoyan & Bulusu, Sharath, 2005. "Design of international assembly systems and their supply chains under NAFTA," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 467-493, November.
    • Handle: RePEc:eee:transe:v:41:y:2005:i:6:p:467-493
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554505000438
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rosenthal, Edward C., 2008. "A game-theoretic approach to transfer pricing in a vertically integrated supply chain," International Journal of Production Economics, Elsevier, vol. 115(2), pages 542-552, October.
    2. Alumura, Sibel A. & Karab, Bahar Y. & Melo, M. Teresa, 2013. "Location and logistics," Technical Reports on Logistics of the Saarland Business School 5, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    3. Elias Olivares-Benitez & José González-Velarde & Roger Ríos-Mercado, 2012. "A supply chain design problem with facility location and bi-objective transportation choices," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(3), pages 729-753, October.
    4. Li, Xiaopeng, 2013. "An integrated modeling framework for design of logistics networks with expedited shipment services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 46-63.
    5. Guchhait, Rekha & Sarkar, Biswajit, 2024. "A decision-making problem for product outsourcing with flexible production under a global supply chain management," International Journal of Production Economics, Elsevier, vol. 272(C).
    6. Dong Liang & Wilbert E. Wilhelm, 2013. "Dual‐ascent and primal heuristics for production‐assembly‐distribution system design," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(1), pages 1-18, February.
    7. Nayeri, Sina & Sazvar, Zeinab & Heydari, Jafar, 2022. "A global-responsive supply chain considering sustainability and resiliency: Application in the medical devices industry," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    8. Zhu, Xiaoyan & Wilhelm, Wilbert E., 2007. "Three-stage approaches for optimizing some variations of the resource constrained shortest-path sub-problem in a column generation context," European Journal of Operational Research, Elsevier, vol. 183(2), pages 564-577, December.
    9. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    10. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2012. "A tabu search heuristic for redesigning a multi-echelon supply chain network over a planning horizon," International Journal of Production Economics, Elsevier, vol. 136(1), pages 218-230.
    11. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    12. Mariel, Katharina & Minner, Stefan, 2017. "Benders decomposition for a strategic network design problem under NAFTA local content requirements," Omega, Elsevier, vol. 68(C), pages 62-75.
    13. Guoming Lai & Yixuan Liu & Wenqiang Xiao, 2021. "International Taxation and Production Outsourcing," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 402-418, February.
    14. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.
    15. Lee, Chaehwa & Wilhelm, Wilbert, 2010. "On integrating theories of international economics in the strategic planning of global supply chains and facility location," International Journal of Production Economics, Elsevier, vol. 124(1), pages 225-240, March.
    16. Zhen, Lu, 2014. "A three-stage optimization model for production and outsourcing under China’s export-oriented tax policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 1-20.
    17. Martí, Joana M. Comas & Tancrez, Jean-Sébastien & Seifert, Ralf W., 2015. "Carbon footprint and responsiveness trade-offs in supply chain network design," International Journal of Production Economics, Elsevier, vol. 166(C), pages 129-142.
    18. Correia, Isabel & Melo, Teresa, 2016. "Multi-period capacitated facility location under delayed demand satisfaction," European Journal of Operational Research, Elsevier, vol. 255(3), pages 729-746.
    19. Zhang, Abraham & Luo, Hao & Huang, George Q., 2013. "A bi-objective model for supply chain design of dispersed manufacturing in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 48-58.
    20. Martin Steinrücke & Wolfgang Albrecht, 2016. "A flow-to-equity approach to coordinate supply chain network planning and financial planning with annual cash outflows to an institutional investor," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 297-333, August.
    21. Wenqiang Xiao & Vernon N. Hsu & Qiaohai (Joice) Hu, 2015. "Manufacturing Capacity Decisions with Demand Uncertainty and Tax Cross-Crediting," Manufacturing & Service Operations Management, INFORMS, vol. 17(3), pages 384-398, July.
    22. Vernon N. Hsu & Kaijie Zhu, 2011. "Tax-Effective Supply Chain Decisions Under China's Export-Oriented Tax Policies," Manufacturing & Service Operations Management, INFORMS, vol. 13(2), pages 163-179, November.
    23. Meisel, Frank & Kirschstein, Thomas & Bierwirth, Christian, 2013. "Integrated production and intermodal transportation planning in large scale production–distribution-networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 62-78.
    24. M. Melo & S. Nickel & F. Saldanha-da-Gama, 2014. "An efficient heuristic approach for a multi-period logistics network redesign problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(1), pages 80-108, April.
    25. Marius Häntsch & Arnd Huchzermeier, 2013. "Identifying, analyzing, and assessing risk in the strategic planning of a production network: the practical view of a German car manufacturer," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(2), pages 125-158, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:41:y:2005:i:6:p:467-493. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.