{"title":"A Multi-Echelon Global Supply Chain Network Design Based on Transfer-Pricing Strategy","authors":"Rongyao Zhang, Kan Wang","doi":"10.1142/S2424862218500203","DOIUrl":null,"url":null,"abstract":"An inimitable global supply chain would provide multinational enterprises (MNEs) competitive advantage and transfer pricing strategy to coordinate the relationship between the facilities within the global value chain. In this paper, we present a framework of multi-echelon global supply chain consisting of supplier, manufacturer and a distribution center which enables the MNEs to coordinate the facilities within the value chain based on the maximization total profits theory. An optimal model is established to describe how the transfer price affects the performance of the global supply chain. Through the numerical analysis, we find that the network of global supply chain positively affects the total performance of MNEs and transfer price strategy as a kind of coordinate method which impacts the total profit of the global supply chain.","PeriodicalId":51835,"journal":{"name":"Journal of Industrial Integration and Management-Innovation and Entrepreneurship","volume":null,"pages":null},"PeriodicalIF":3.4000,"publicationDate":"2019-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"17","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Industrial Integration and Management-Innovation and Entrepreneurship","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1142/S2424862218500203","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 17
Abstract
An inimitable global supply chain would provide multinational enterprises (MNEs) competitive advantage and transfer pricing strategy to coordinate the relationship between the facilities within the global value chain. In this paper, we present a framework of multi-echelon global supply chain consisting of supplier, manufacturer and a distribution center which enables the MNEs to coordinate the facilities within the value chain based on the maximization total profits theory. An optimal model is established to describe how the transfer price affects the performance of the global supply chain. Through the numerical analysis, we find that the network of global supply chain positively affects the total performance of MNEs and transfer price strategy as a kind of coordinate method which impacts the total profit of the global supply chain.
期刊介绍:
The Journal of Industrial Integration and Management: Innovation & Entrepreneurship concentrates on the technological innovation and entrepreneurship within the ongoing transition toward industrial integration and informatization. This journal strives to offer insights into challenges, issues, and solutions associated with industrial integration and informatization, providing an interdisciplinary platform for researchers, practitioners, and policymakers to engage in discussions from the perspectives of innovation and entrepreneurship.
Welcoming contributions, The Journal of Industrial Integration and Management: Innovation & Entrepreneurship seeks papers addressing innovation and entrepreneurship in the context of industrial integration and informatization. The journal embraces empirical research, case study methods, and techniques derived from mathematical sciences, computer science, manufacturing engineering, and industrial integration-centric engineering management.