Since the complexity ofglobalization and the importance of the transportation process, global manufacturersneed to consider production planning with complex transportation situation. Theconstant value of transportation process is not accurate and leads to totalcost increasing. Corresponding to different supplying network, appropriatetransportation modes with nonconstant value should be considered withproduction planning simultaneously.The proposed model aims toassist managers to make decisions about production allocation, transportationmode selection, shipping contracts by volume with carriers and vessel companiesunder a given network.This study develops a globalproduction–shipping planning model that incorporates a decision ontransportation mode after considering the cost function of differenttransportation modes from the shipper’s point of view. We propose trampshipping, liner shipping mode into production-shipping planning, consideringtransshipment and consolidation to exploit economies of scale under a givennetwork. We present mathematical formulations of tramp, liner modes. In orderto verify the effectiveness of the proposed modes, we present a practical casestudy that is motivated by a real-world example. The two modes are compared anddiscussed in numerical examples. The result of this study was presented in the 9th International Conference on Operations andSupply Chain Management.

One of the main challenges for the manufacturing industry is to ensure the appropriate allocation ofbenefits to all subsidiaries to achieve the ideal pattern of rapid and sharedgrowth. Transfer price, which is the internal price among subsidiaries of aglobal manufacturing firm, is an important financial and business issue.However, most previous studies simply assume transfer prices. Our study revealsthat transfer pricing can lead to different total profits of global supply chainsand different profit allocation effects on subsidiaries. Furthermore, the exchangerate is also considered with production planning since it is treated as animportant global factor that can cause the profits of all subsidiaries tofluctuate. We add exchange constraints on both manufacturing and salessubsidiaries to reduce the inappropriate allocation of profits amongsubsidiaries. A profit allocation approach is proposed that considers transferpricing and exchange rate simultaneously with production planning. The model isformulated using nonlinear programming with a nonconvex objective function andnonlinear constraints. However, we overcome modeling challenges using piecewiselinear modeling and are able to obtain mixed-integer linear programming (MILP)model, which can be solved using a linear programming solver. The result of this study was presented in 25th International Conference on Production Research (ICPR).