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Tariff concessions in production sourcing |
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| Authors: | Yunsong Guo Yanzhi Li Andrew Lim Brian Rodrigues |
| Institution: | 1. Department of Computer Science, Cornell University, Ithaca, NY 14853, USA;2. Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong;3. Department of IELM, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;4. Lee Kong Chian School of Business, Singapore Management University, 50 Stamford Road, Singapore 178899, Singapore |
| Abstract: | 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. |
| Keywords: | Production sourcing Tariffs Heuristics |
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