Supply Chain Network Design with Preferential Tariff under Economic Partnership Agreement
In this paper, the authors present a supply chain network design model to best utilize available preferential tariff under economic partnership scheme. Process to check applicability of preferential tariff, i.e., duty-free, for each transit from a site to the other in the supply chain network is embedded in the model, which can treat both cases with and without preferential tariff uniformly upon given regional economic partnership scheme. Effective utilization of preferential tariff yields significant reduction of supply chain cost. The effectiveness of the model was evaluated with small sample case and is currently under evaluation through numerical experiments with data in actual case.