An Optimal Method for Developing Global Supply Chain Management System

Owing to the transparency in supply chains, enhancing competitiveness of industries becomes a vital factor. Therefore, many developing countries look for a possible method to save costs. In this point of view, this study deals with the complicated liberalization policies in the global supply chain management system and proposes a mathematical model via the flow-control constraints, which are utilized to cope with the bonded warehouses for obtaining maximal profits. Numerical experiments illustrate that the proposed model can be effectively solved to obtain the optimal profits in the global supply chain environment. 1. Introduction Traditionally, supply chain management (SCM) mainly offers different ways to reduce the production and transportation costs such that either the total expenditures in a supply chain can be minimized [1, 2] or the profits can be maximized [3, 4] to enhance the industrial competitiveness. These concepts above have been formed as SCM mathematical models in the last few decades such as supplier’s pricing policy in a just-in-time environment [5], pricing strategy for deteriorating items using quantity discount when customer demand is sensitive [6], and an optimization approach for supply chain management models with quantity discount policy [7]. On the other hand, a part of studies is focused on demand forecasting [8–11] to decrease the impact of the bullwhip effect [12, 13]. Additionally, some studies utilize the neural network method and regression analysis to improve the accuracy for forecasting customer demand [14–16], and furthermore, these connection weights in neural networks are assigned weighting based on fuzzy analytic hierarchy process methods without any tunings [14, 17]. By the previous mentions, we cannot guarantee that the solution are optimal. Based on the reason, this study proposes a deterministic method, an approximate method for linearizing nonlinear time series analysis model, to forecast customer demand in Section 3.2. Many researchers have suggested that information sharing is a key influence on SCM environments [11, 18] and that it impacts the SCM performance in terms of both total costs and service levels [11, 19, 20]. However, the development of a global SCM model must share information as much as possible. We then suppose that the information in our experimental tests is shared to simplify the SCM situations [21–23]. In order to enhance the competitiveness of industries, a liberalization policy discussed in recent years becomes an important factor. Many developing countries have implemented a