A tax savings model for the emerging global manufacturing network

The emerging global manufacturing network involves nodal location features of tax areas and international logistics zones, manufacturing procedures of simple process and deep process, as well as transportation arcs. Since choosing tax savings locations and manufacturing procedures that increase after-tax profit is important to global manufacturers, this study aims to present several tax savings approaches and to develop a tax savings model for maximizing after-tax profit in the emerging network. Numerical illustration demonstrates that the proposed model is an effective approach for global manufacturers to achieve tax savings. The proposed model elucidates the crucial logistics behavior associated with tax savings.