Under the current globalization of the economy
and with the emergence of global logistics management
as a new discipline, the role of these models in the design of Global Logistics Systems (GLS) is
significant (see Vidal and Goetschalckx, 1996). To
illustrate, a typical global supply chain is shown in
Fig. 1.
We will distinguish between domestic and international
strategic production-distribution models.
The former models consider strategic productiondistribution
decisions within a single country or a
unified group of countries, e.g., the continental
United States. On the other hand, the latter models
include global features and consider multiple countries
for selecting vendors, and locating plants and
warehouses.
Global supply chain models are more complex
and difficult to solve than domestic models. In an
international scenario, the flow of cash and the flow
of information are more important and difficult to
coordinate than they are in a single-country environment.
The inclusion of different taxes and duties,
differential exchange rates, trade barriers, transfer
prices, and duty drawbacks is fundamental for a
model to more accurately represent the real system.
In addition, sources of uncertainty and qualitative
factors, such as government stability and general
infrastructure of a particular country, are critical
issues for the strategic design of a global supply
chain. These factors should be considered when designing
any global supply chain, but they are very
difficult to include in mathematical models. This article describes the existing models for global supply
chain design, highlighting their contributions and
limitations.
In Section 2, we describe the relevant literature,
classified into four categories: previous reviews, optimization
models, additional issues for modeling,
and case studies and applications. Section 2.5 focuses
on global supply chain models. The main lack
of features and opportunities for further research are
then presented in Section 3. We finally present some
concluding comments in Section 4.
Under the current globalization of the economyand with the emergence of global logistics managementas a new discipline, the role of these models in the design of Global Logistics Systems (GLS) issignificant (see Vidal and Goetschalckx, 1996). Toillustrate, a typical global supply chain is shown inFig. 1.We will distinguish between domestic and internationalstrategic production-distribution models.The former models consider strategic productiondistributiondecisions within a single country or aunified group of countries, e.g., the continentalUnited States. On the other hand, the latter modelsinclude global features and consider multiple countriesfor selecting vendors, and locating plants andwarehouses.Global supply chain models are more complexand difficult to solve than domestic models. In aninternational scenario, the flow of cash and the flowof information are more important and difficult tocoordinate than they are in a single-country environment.The inclusion of different taxes and duties,differential exchange rates, trade barriers, transferprices, and duty drawbacks is fundamental for amodel to more accurately represent the real system.In addition, sources of uncertainty and qualitativefactors, such as government stability and generalinfrastructure of a particular country, are criticalissues for the strategic design of a global supplychain. These factors should be considered when designingany global supply chain, but they are verydifficult to include in mathematical models. This article describes the existing models for global supplychain design, highlighting their contributions andlimitations.In Section 2, we describe the relevant literature,classified into four categories: previous reviews, optimizationmodels, additional issues for modeling,and case studies and applications. Section 2.5 focuseson global supply chain models. The main lackof features and opportunities for further research arethen presented in Section 3. We finally present someconcluding comments in Section 4.
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