A Study On The Production And Distribution Planning Of Multinational Company Under Stochastic Production Capacity And Demand

With the growing of the trend of the Economic integration and globalization of economic,many enterprises set up branches around the world for selling and producting in order to seize the opportunities and cut down the operation costs.And the flow of raw material,products,technolgy and service among various subsidiaries comes with the formation of internal trade which forms a complex and integrated international production system.Thus, it becomes one of most important issues of multinational company that how to arrange production on a global scale including transporation and inventory to maximize after-tax profit of the supply chain or minimize the cost.At the beginning, the paper states some basic theories of multinational company supply chain planning,then review the related papers and make simple summary.Then the paper established two models under the modes of centralized decision-making and decentralized decision-making.The similarity is that both of the models have same framework including a parent company and some subsidiaries.Besides,they belong to secondary supply chain model including multi-company,multi-product,multi-planning period which the production capacity and demand are random.First of all,I established a model under the mode of centralized decision-making.It’s easy to find out that there are two uncertain factors,they are random production capacity and demand.thus the model should be changed into chance constrained programming model,and turn the nonlinear model into linear model through variable substitution.The numerical examples verified two points in this article:first,in the condition of limited production capacity,those market which bring greater profit should be meet while the others may not be meet in order to achieve the overall maximum profit;second,it’s common to sacrifice the interests of some subsidiaries to achieve the overall maximum profit in some specific conditions.Secondly, I established a model under the mode of decentralized decision-making.And I relaxed the coupling correlation constraints by Lagrangian Relaxation Algorithm so that the centralized decision-making model can be decomposed into independent model of each subsidiary.The parent company is a coordination center.At last,the model is proved feasible through numerical examples.