Modeling international facility location under uncertainty: A review, analysis, and insights

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

In this article, we focus on international facility location models. First, we conduct an extensive literature review on the subject and we propose a classification of the surveyed papers. The classification includes the modeling approach used, international factors, as well as dynamic and stochastic aspects of the approach. Based on the literature review, we find that international facility location problems received little attention. In particular, dynamic facility location models under uncertainty have been hardly studied. Therefore, we develop a stochastic dynamic international facility location model, using a Mixed-Integer Linear Programming (MILP) formulation. Through a case study, we show that international factors, as well as the dynamic and stochastic components of the problem, might influence strategic location decisions. We also quantify the added value of using a stochastic model instead of a deterministic counterpart and we derive insights regarding policies that governments can use to attract investments.

Original languageEnglish
Pages (from-to)535-551
Number of pages17
JournalIISE Transactions
Volume50
Issue number6
DOIs
Publication statusPublished - Jun 3 2018
Externally publishedYes

Keywords

  • International facility location
  • global supply chain network design
  • two-stage stochastic program

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering

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