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Tariff concessions in production sourcing. (English) Zbl 1149.90050
Summary: 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.
MSC:
90B30 Production models
90C59 Approximation methods and heuristics in mathematical programming
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