Dynamic location and entry mode selection of multinational manufacturing facilities under uncertainty: A change-constrained goal programming approach

As the global marketplace continues to expand, the firm’s location strategy should shift from domestic to international. An international location problem is different from the traditional domestic location problem in that the former is influenced by a greater variety of uncontrollable, unpredictable, and dynamic factors than is the latter. These factors may include political conditions, expropriation risks, trade regulations, currency exchange rates, cultural differences, and global distribution channel structures. Consequently, the international location problem is more diverse, volatile and complex. Nevertheless, a vast majority of the location literature overlooked many important international aspects. To help the multinational firm formulate viable location strategies in the changing world marketplace, this paper proposes multiple-period, multiple-plant, multiple-objective, and stochastic location model.