Supply Chain Network Design with Preferential Tariff under Economic Partnership Agreement

Transcription

1 roceedigs of the 2014 Iteratioal oferece o Idustrial Egieerig ad Oeratios Maageet Bali, Idoesia, Jauary 7 9, 2014 Suly hai Network Desig with referetial ariff uder Ecooic artershi greeet eichi Fuaki Yokohaa Research Laboratory itachi Ltd. Yokohaa, aagawa , Jaa Juko osoda Yokohaa Research Laboratory itachi Ltd. Yokohaa, aagawa , Jaa bstract I this aer, we reset a suly chai etwork desig odel to best utilie available referetial tariff uder ecooic artershi schee. rocess to check alicability of referetial tariff, i.e., duty-free, for each trasit fro a site to the other i the suly chai etwork is ebedded i the odel, which ca treat both cases with ad without referetial tariff uiforly uo give regioal ecooic artershi schee. Effective utiliatio of referetial tariff yields sigificat reductio of suly chai cost. he effectiveess of the odel was evaluated with sall sale case ad is curretly uder evaluatio through uerical exeriets with data i actual case. eywords Suly chai etwork desig, referetial tariff, Otiiatio 1. Itroductio Excellece of suly chai aageet is vital ot oly to obtai high oeratioal efficiecy but also to survive i global coetitio. Esecially, it is ofte said that suly chai etwork desig as well as roduct desig ad set-u for executio rocesses deteries 80% of total suly chai costs, while oeratioal efforts at executio stage such as order rocessig, rocureet, roductio, shiig ad distributio cover oly 20%. herefore, otial desig of suly chai etwork is oe of the fudaetal key factors i strategic decisio akig. riary urose of suly chai etwork desig is to establish the best suly chai etwork with the lowest total cost to achieve required erforace i lie with the coay s suly chai strategy. I the ast, suly chai etwork desig roble was sily to deterie locatio of sites for factories, warehouses ad distributio ceters costs associated with suly chai could be evaluated with straightforward liear calculatio. Due to recet raid chagig busiess eviroet, aagerial issues ad iterests i suly chai strategy have chaged ad thus requireets for suly chai etwork desig have chaged ad got colicated. og such issues, effective utiliatio of referetial tariff uder ecooic artershi schee is sigificat sice it akes direct iact o suly chai cost. Recetly ay coutries try to establish ecooic artershi with coutries which have close trade relatio. Esecially, together with regioal ecooic security cosideratios, ecooic artershi agreeet is established aog ultile coutries i a regio. I the south-east sia, IG (SEN rade i Goods greeet) ad JE (SEN-Jaa orehesive Ecooic artershi greeet) are tyical exercises. Whe a referetial regio sreads across ultile coutries, how to overlay suly chai etwork o the regio is oe of key issues i suly chai strategy. owever, to the best of our kowledge, there has bee o research o suly chai etwork desig odel with utiliatio of referetial tariff uder ecooic artershi schee. I this aer, we reset a odel that eables us to best utilie available referetial tariff i suly chai etwork desig. 1268

2 2. Basic Setu for Suly hai Network Desig roble ere we start with the fudaetal odel for suly chai etwork otiiatio as follows; Notatio G : N, Network of suly chai cosistig of odes N ad arcs N Set of odes that describe fuctios i suly chai Set of liks that describe roduct flow relatios aog odes N ~ Set of odes o the ath fro ode to the ed ode of the suly chai icludig ode laig horio Quatity of roduct at ode eeded er a fial roduct d( t Dead quatity of fial roduct durig ( t 1, t] by the roductio la ade at t d (t) verage dead quatity durig ( t 1, t] d ( t Quatity of dead for ode fro its succeedig ode durig ( t 1, t] by the roductio la ade at t x ( t Quatity of roduct to be rocessed at ode durig ( t 1, t] by the roductio la ade at t x k verage total quatity of roduct to be rocessed at ode over the laig horio Biary variable for site locatio selectio, which is 1 if the k th locatio otio for ode is selected ad 0 otherwise O k he k th locatio otio for ode Nuber of locatio otios for ode rocessig tie at ode k rocessig tie at ode with otio k, rasit tie fro ode to ode, rasit tie fro ode with otio h to ode with otio k h k L 1 1 k, h, k 3 3 Lead-tie fro shiig at ode to coletio of rocess at the ed ode Uit rocessig cost at ode Uit rocessig cost at ode with otio k 2 Uit trasit cost fro ode to ode 2 Uit trasit cost fro ode with otio h to ode with otio k k Fixed cost at ode for laig horio Fixed cost of ode with otio k for laig horio We odel a suly chai as a etwork G N, : i which odes i N are fuctios i the suly chai ad arcs i are liks that describe roduct flow relatios aog odes. Followig the etwork odel schee of Graves ad Willes (2005), we itroduce biary variable k for selectio of site locatio for each ode, which works as defied i the Notatio above. We select oe otio for each ode, i.e., 1, ad the values of cost ad tie k 1 k 1269

3 at odes ad liks betwee odes deed o selectio of locatio otios. Now we forulate the suly chai etwork desig roble as follows; Otiiatio odel i 1 x 2, x 3 N, N, (1) subject to x L L t1 L E x ( t d t1 ( t) (2) i i, j ~, j, i, jn j 1 1 (4) k k k 1, 2h, k hk h1 k 1 2, k 1 (3), (5) 3 3 (6) h1 k 1 h, k k 1,, h k k k k k k k 1 0,1, k (7), (8) 1 (9) (10) k, he objective fuctio is su of total rocessig cost, total trasit cost ad fixed cost icurred deedig o locatio selectio. Whe a lik coects sites i differet coutries, i.e., describes exort fro oe coutry to the other, cost due to tariff is icluded i the corresodig trasit cost value. he roble is tyically a MI (Mixed Iteger rograig) roble ad ca be solved by ordiary MI solvers. 3. Otiiatio Model with referetial ariff Effective utiliatio of referetial tariff yields sigificat reductio of suly chai cost. referetial tariff is alied to a roduct that satisfies the corresodig criteria. Oe of tyical criteria is ratio of value added i the regio. For exale, if a roduct ade i a F coutry cotais value added i F regio of ore tha or equal to 40% of FOB value of the roduct, it is qualified for exort to the other F coutry with the referetial tariff, i.e., without duty. I order to clear the criterio, the coay eeds to reset certificate of origi of the roduct by calculatig su of value added i the regio icludig value of aterials sulied fro the arter coutries. 1270

4 I order to take the effect of referetial tariff ito suly chai etwork desig roble, judget rocess for alicability of referetial tariff ust be ebedded i the otiiatio rocess. We roose to forulate the suly chai etwork desig roble as the followig otiiatio odel which icludes alicability check of referetial tariff of o duty for each lik i the etwork. he odel ca treat both cases with ad without referetial tariff uiforly uo give regioal ecooic artershi schee. Otiiatio odel with referetial tariff i 1 x 2, 4, x 3 N subject to the equatios (2) through (10) ad, 4 ( h, k,, h, k 1 h1 k1 h, k rh, k N 4 4 w e e, h k h 4 V, 0,1, k,1 e k, w k, (11), (12), (13) (14), 0, (15) 4 ) is uit cost due to tariff o exort fro ode (with otio h ) to ode (with otio k ), r h, k is oral tariff rate without referece o exort fro ode with otio h to ode with otio k, ad V is value of roduct at ode. Sice the value of roduct at a ode deeds o selectio of locatio, we itroduce a valuatio fuctio V ( ) as i equatio (16), Nˆ is set of all the ustrea odes of ode icludig. he valuatio fuctio V ( ) returs value of roduct at ode uo give set of otio selectio variables h for ode i Nˆ. V V h, N ˆ (16) he biary araeter e k i the equatio (12) is to idetify locatio icluded i the ecooic artershi regio, which is 1 if the k th locatio otio for ode is i the regio ad 0 otherwise. I order to judge if the roduct at ode is qualified for referetial tariff, we itroduce biary deedet variable w, which is 1 if the roduct at ode satisfies the corresodig criterio. riterio to be used deeds o the rule adoted i the agreeet. For exale, Qualifyig Value otet (QV) rule, which is used i ay ecooic artershi agreeets icludig IG, is described as equatio (17) with a give threshold value of. V NV, (17) V NV is su of value of roducts sulied fro the iediate ustrea odes of ode, which are NO i the ecooic artershi regio. Usig e k, NV is calculated by the equatio as follows; 1271

5 NV h x, (18) N h 1 V 1 eh N is set of all the iediate ustrea odes of ode. Note that soe coutries articiate i ultile ecooic artershi schees (For exale, SEN coutries are uder IG ad also articiate i JE with Jaa). I such a case, the above odel is assessed for each schee ad the best solutio over all the schees will be the otial solutio. 4. oclusio I this aer, we reset a suly chai etwork desig odel to best utilie available referetial tariff uder ecooic artershi schee. he odel ca treat both cases with ad without referetial tariff uiforly uo give regioal ecooic artershi schee. Sice effective utiliatio of referetial tariff yields sigificat reductio of suly chai cost, we believe it cotributes to establishet of coetitive suly chai i ay fields. By our reliiary exeriet with sale data, we observed the odel could yield reductio of cost due to tariff by 27% i a case of auto-arts suly chai. It will be evaluated through uerical exeriets with data i actual case. Reaied issues iclude extesio of varieties of referetial tariff criterio other tha QV rule ad itegrated odel to solve the roble with ultile ossible ecooic artershi schees. Refereces Graves, S.., ad Willes, S.., Otiiig the suly chai cofiguratio for ew roduct, Maageet Sciece, vol. 51, o. 8, , Biograhy eichi Fuaki is Geeral Maager of Service Iovatio Research Deartet at Yokohaa Research Laboratory, itachi Ltd. e received B.E. (1991), M.S. (1993) ad Dr. Eg. (2001) i Idustrial Egieerig fro Waseda Uiversity, okyo. is aers have aeared i Iteratioal Joural of roductio Ecooics, Joural of the Oeratios Research Society of Jaa, IEEE rasactios o Reliability, rasactios of the Jaa Society of Mechaical Egieers, Joural of Jaa Idustrial Maageet ssociatio ad others. e teaches aageet systes at okkaido Uiversity as a visitig associate rofessor ad roductio ad logistics systes at okyo Metroolita Uiversity as a visitig lecturer. e was a visitig research executive at Suly hai ad Logistics Istitute, Georgia Istitute of echology i 2008 ad is research iterests iclude suly chai aageet, service egieerig ad aalytics for busiess iovatio. Juko osoda is Researcher of Maufacturig Systes 1st Research Deartet at Yokohaa Research Laboratory, itachi Ltd. She received B.E. (1997), M.S. (1999) i Idustrial Egieerig fro okyo Istitute of echology, okyo. er research iterests iclude suly chai aageet ad atheatical rograig. She is a eber of the Oeratios Research Society of Jaa ad Jaa Idustrial Maageet ssociatio. 1272