Zhang, A. and Huang, G. Q. (2009) A Mixed Integer Programming Model to Evaluate the Impact of Business Factors on Global Manufacturing Relocation Decisions. In: International Conference on Computers & Industrial Engineering, Troyes, France, 6-9 July 2009, pp. 390-395. ISBN 9781424441358 (doi: 10.1109/ICCIE.2009.5223739)
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Abstract
In recent years, dramatic changes in business factors have triggered a trend of manufacturing relocation out of ldquoThe World's Factoryrdquo, which is the pearl river delta (PRD), China. Global manufacturers in PRD have been facing unprecedented operating cost pressure, due to RMB currency appreciation, rising labor cost, highly volatile oil price, tax rebate adjustment and industry policy changes. This paper presents a mixed integer programming (MIP) model, to evaluate the impact of business factors on global manufacturing relocation decisions. Objective function of the MIP model is to minimize total landed cost (TLC) for international markets. Application of the MIP model is illustrated through a case study with a hypothetical footwear manufacturer. Managerial implications on supply chain dynamics and regional economy are derived from modeling results and analysis.
| Item Type: | Conference Proceedings |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Zhang, Dr Abraham |
| Authors: | Zhang, A., and Huang, G. Q. |
| College/School: | College of Social Sciences > Adam Smith Business School > Management |
| Journal Name: | 2009 International Conference on Computers and Industrial Engineering, CIE 2009 |
| ISBN: | 9781424441358 |
| Related URLs: |
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