Supply chain planning for a multinational enterprise: a performance analysis case study
Year: 2013
Type: article
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.
Authors: Behnam Fahimnia, Edward Parkinson, Nikolaos P. Rachaniotis, Zubair Mohamed, ark Goh
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2033706753