Production allocation for global manufacturing under import quota restriction and uncertainty

Wu, Yue and Zhu, Lin (2022) Production allocation for global manufacturing under import quota restriction and uncertainty. Euro 2022, Aalto University, Espoo, Finland. 03 - 06 Jul 2022.

Abstract

Production allocation, as a vital part of supply chain management, has inevitably been affected by the rapid development of globalization. Many domestic companies are facing greater competition from inter national companies than before. As a result, some governments pro vide some policies to protect their domestic companies, such as import quotas that is discussed in this research. Import quotas are extensively employed by various governments as a means of addressing perceived trade imbalances. With today’s increasingly competitive environment, many international companies, whose markets are located in Europe and North America, for example, decide to manufacture their prod ucts in developing countries, such as Vietnam, mainland China and Thailand. Their sales departments collect market information, which is continually changing, and their headquarters allocate production among their manufacturing plants in different regions and countries. Additionally, not all information for production allocation is known in advance makes decision-making more complicated. The headquarters have to allocate production among their manufacturing companies un der uncertain demand and quota limitation. In this research, a robust model is developed for global production allocation under demand un certainty and quota limitation. Numerical results and tests are carried out to demonstrate the effectiveness of the robust model.

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Contributors

Author: Yue Wu

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