Development of International facility location model applying the combination of MCDM and location covering techniques under uncertainty

Document Type : Research Paper

Authors

1 MSc., Faculty of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

2 Assistant Professor, Faculty of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran

3 MSc., Faculty of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran

Abstract

Different decisions, including location decisions of companies which are operating in international dynamic environment are subject to significant uncertainty.So in this research an international facility location problem under uncertainty is considered and an integrated model for strategic and operational planning is presented. In strategic level countries are assessed according to international economic indices available in Global Competitiveness Report (GCR (and in operational level regarding the obtained values and factors like establishment costs, transportation costs, capacity and demand a multi objective optimization model is developed.The problem includes three objective functions: finding the least number of facilities, locating them in the best possible locations and minimizing transportation costs. A demonstration of the application of the methodology is presented by investigating the location problem of an international pharmaceutical company in Europe.

Keywords

References

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Industrial Management Journal
Volume 7, Issue 4
January 2016
Pages 743-766

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