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Article: A multi-period mixed integer programming model for the problem of relocating a global manufacturing facility

TitleA multi-period mixed integer programming model for the problem of relocating a global manufacturing facility
Authors
Keywordsfacility relocation
global manufacturing
mixed integer programming
Pearl River Delta
supply chain management
Issue Date2010
PublisherTaylor and Francis.
Citation
Journal Of The Chinese Institute Of Industrial Engineers, 2010, v. 27 n. 6, p. 407-417 How to Cite?
AbstractIn the recent years, changing business conditions have triggered labor-intensive global manufacturers to consider relocating out of the Pearl River Delta of China, known as The World's Factory. This article presents a multi-period mixed integer programming model for the problem of relocating a global manufacturing facility. The objective function of the model is to maximize total after-tax profit. The model addresses dynamic aspects of timing, including potential developments in business factors and the need for a gradual capacity transfer in order not to disrupt supply chain activities. The model application generates an optimal capacity transfer schedule and forecasts after-tax profits. In general, a stable exchange rate for the Chinese currency, renminbi (RMB), would make lower-cost areas of China more competitive. Also, a dramatic RMB appreciation would enhance the comparative advantage of Asian lower-cost countries. A rapid increase in oil prices would make locations near major markets more favorable in order to avoid high transportation costs. © 2010 Chinese Institute of Industrial Engineers.
Persistent Identifierhttp://hdl.handle.net/10722/129239
ISSN
References

 

DC FieldValueLanguage
dc.contributor.authorZhang, Aen_HK
dc.contributor.authorHuang, GQen_HK
dc.date.accessioned2010-12-23T08:33:55Z-
dc.date.available2010-12-23T08:33:55Z-
dc.date.issued2010en_HK
dc.identifier.citationJournal Of The Chinese Institute Of Industrial Engineers, 2010, v. 27 n. 6, p. 407-417en_HK
dc.identifier.issn1017-0669en_HK
dc.identifier.urihttp://hdl.handle.net/10722/129239-
dc.description.abstractIn the recent years, changing business conditions have triggered labor-intensive global manufacturers to consider relocating out of the Pearl River Delta of China, known as The World's Factory. This article presents a multi-period mixed integer programming model for the problem of relocating a global manufacturing facility. The objective function of the model is to maximize total after-tax profit. The model addresses dynamic aspects of timing, including potential developments in business factors and the need for a gradual capacity transfer in order not to disrupt supply chain activities. The model application generates an optimal capacity transfer schedule and forecasts after-tax profits. In general, a stable exchange rate for the Chinese currency, renminbi (RMB), would make lower-cost areas of China more competitive. Also, a dramatic RMB appreciation would enhance the comparative advantage of Asian lower-cost countries. A rapid increase in oil prices would make locations near major markets more favorable in order to avoid high transportation costs. © 2010 Chinese Institute of Industrial Engineers.en_HK
dc.languageengen_US
dc.publisherTaylor and Francis.en_US
dc.relation.ispartofJournal of the Chinese Institute of Industrial Engineersen_HK
dc.subjectfacility relocationen_HK
dc.subjectglobal manufacturingen_HK
dc.subjectmixed integer programmingen_HK
dc.subjectPearl River Deltaen_HK
dc.subjectsupply chain managementen_HK
dc.titleA multi-period mixed integer programming model for the problem of relocating a global manufacturing facilityen_HK
dc.typeArticleen_HK
dc.identifier.emailHuang, GQ:gqhuang@hkucc.hku.hken_HK
dc.identifier.authorityHuang, GQ=rp00118en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1080/10170669.2010.512772en_HK
dc.identifier.scopuseid_2-s2.0-78149264981en_HK
dc.identifier.hkuros178661en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-78149264981&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume27en_HK
dc.identifier.issue6en_HK
dc.identifier.spage407en_HK
dc.identifier.epage417en_HK
dc.publisher.placeTaiwan, Republic of Chinaen_HK
dc.identifier.scopusauthoridZhang, A=35147462100en_HK
dc.identifier.scopusauthoridHuang, GQ=7403425048en_HK

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