Analysis of supply chain network by rules of origin in fta environment

Taesang Byun, Jisoo Oh, Bongju Jeong

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper presents a supply chain in Free Trade Agreements (FTA) environments governed by rules of origin and analyzes it using profit analysis and supply chain planning. The proposed supply chains follow the rules of origin as wholly obtained, substantially transformation, and third country processing criteria. These supply chain can be used to take nontariff benefits according to the rules of origin. In order to evaluate the validity of the proposed supply chain, we construct profit models and show optimal sales prices can maximize net profits. The profit model encompasses the structure of supply chain which enables decision-makers to make a strategic decision on evaluation and selection of efficient FTA. Using the output of profit models, global supply chain planning models are built to maximize profit and customer needs. A case study for a textile company in Korea is provided for illustrating how the proposed supply chain models work.

Original languageEnglish
Pages (from-to)421-435
Number of pages15
JournalInternational Journal of Industrial Engineering : Theory Applications and Practice
Volume21
Issue number6
Publication statusPublished - 2014 Jan 1

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All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering

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