Supply chain planning for a multinational enterprise: a performance analysis case study

Date

2013

Authors

Fahimnia, Behnam
Parkinson, Edward
Rachaniotis, Nikolaos P.
Mohamed, Zubair
Goh, Mark

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Journal article

Citation

International Journal of Logistics, Research and Applications, 2013; 16(5):349-366

Statement of Responsibility

Behnam Fahimnia, Edward Parkinson, Nikolaos P. Rachaniotis, Zubair Mohamed and Mark Goh

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Abstract

Motivated by a real world supply chain planning problem, this paper examines the impacts of exchange rate volatility and different shipping pricing structures on the overall performance for a multinational enterprise (MNEs). A unified optimisation model is developed that minimises the major costs incurred in an MNE, incorporating important factors such as manufacturing localisation, exchange rates, and quantity-based shipping pricing structures offered by transport vendors. Numerical results from the model implementation show that (a) shipping pricing structures can have pronounced impacts on manufacturing/assembly and distribution decisions both in the parent and host countries, (b) different shipping pricing structures might not be equally profitable as the cost benefits may only offset the losses from a discriminatory tariff or substantial storage expenses, and (c) increased manufacturing in the host country can be decelerated to a large extent by the localisation policy in the parent country and tight transport and storage limitations.

School/Discipline

School of Computer Science

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© 2013 Taylor & Francis

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