Modeling and optimization of multinational supply network under uncertainties

Abstract

This work addresses the business decision support model for global trading company with multi-products, multi-site production and distribution networks under foreign exchange rate and product price uncertainties. Nowadays most companies have global networks for production, distribution and sales to customers. Traditional approaches of supply network managements usually focus on the operational level far from the financial aspect. Especially tariff and duty drawback effects have not been considered even though they are important for the multinational business. Turbulence of foreign exchange rate affects on the profit of companies involved in import and export businesses and it is one of the serious problems on global market. Companies make business plans considering several uncertainties every year. We propose a new method of global supply network planning under exchange rate uncertainty for business decision support in corporate level for maximizing profits.