Tariff concessions in production sourcing

In this paper, we study a multi-stage production sourcing problem where tariff concessions can be exploited at the firm level using free trade agreements between countries. To solve the problem, an algorithm which embeds a very large-scale neighborhood (VSLN) search into a simulated annealing framework is developed. A numerical study is conducted to verify the effectiveness of the solution approach.

• Type: Journal
• Year: 2008
• Where: EOR
• Authors: Yunsong Guo, Yanzhi Li, Andrew Lim, Brian Rodrigues
• Keywords: EOR 2008, Free Trade Agreements, Production Sourcing Problem, Simulated Annealing Framework