An integrated location, production, distribution and investment model for a multinational corporation

An integrated location, production, distribution and investment model for a multinational corporation

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Article ID: iaor20041974
Country: Netherlands
Volume: 86
Issue: 3
Start Page Number: 201
End Page Number: 216
Publication Date: Jan 2003
Journal: International Journal of Production Economics
Authors: , , ,
Keywords: programming: mathematical, programming: integer
Abstract:

We present a mixed integer linear formulation that extends published models on multinational corporation facility location decisions by including exogenous variables such as exchange rates and tariff rates and incorporating production, distribution, and investment decisions. The model provides insights on production levels; facility configurations, distribution strategies and levels of investment needed at these facilities and explores factors that influence the facility's configuration decisions. Several scenarios are considered based on various facility configurations and levels of exchange and tariff rates. The results obtained from these show that the model's performance and results are in complete agreement with accepted economic theories.

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