International facility location decisions: a review of the modelling literature

Recently, international facilities location problems have attracted a great deal of attention in literature. Consequently, there has been an explosive growth in analytical studies in the field of facility location and, more specifically in global facility location. This paper provides a review of the existing literature with respect to factors involved in global trade and develops a taxonomy of existing analytical models. Some avenues of further research are also suggested.

[1]  Harvey E. Lapan,et al.  Strategic Foreign Direct Investment and Exchange‐Rate Uncertainty , 2000 .

[2]  James V. Jucker,et al.  The Transfer of Domestic-Market Production to a Foreign Site , 1977 .

[3]  Ji Li,et al.  Breaking into China: Strategic Considerations for Multinational Corporations , 2000 .

[4]  T. Clark,et al.  Exchange Rate Pass-Through and International Pricing Strategy: A Conceptual Framework and Research Propositions , 1999 .

[5]  A. Kokko,et al.  Foreign direct investment : firm and host country strategies , 2000 .

[6]  Michael P. D'Itri,et al.  Currency Risk Management Strategies for Contracting with Japanese Suppliers , 1993 .

[7]  M. Cemal Dincer,et al.  A multifactor model for international plant location and financing under uncertainty , 1986, Comput. Oper. Res..

[8]  Henk Akkermans,et al.  Capturing the dynamics of facility allocation , 1996 .

[9]  R. MacDonald,et al.  The Long-Run Relationship between Real Exchange Rates and Real Interest Rate Differentials: A Panel Study , 1999, SSRN Electronic Journal.

[10]  D. Konan The Vertical Multinational Enterprise and International Trade , 2000 .

[11]  D. Ricardo On the Principles of Political Economy and Taxation , 1891 .

[12]  Cem Canel,et al.  Underlying dimensions of business location decisions , 1998 .

[13]  M. Steuer Multinational Corporations in World Development. , 1976 .

[14]  Hsin-Min Tong,et al.  An empirical study of plant location decisions of foreign manufacturing investors in the United States , 1978 .

[15]  E. Ofek,et al.  Exchange Rate Exposure, Hedging, and the Use of Foreign Currency Derivatives , 1997 .

[16]  Peter Haug,et al.  An international location and production transfer model for high technology multinational enterprises , 1992 .

[17]  S. Hymer,et al.  The International Operations of National Firms: A Study of Direct Foreign Investment , 1976 .

[18]  Cem Canel,et al.  A mixed‐integer programming approach for the international facilities location problem , 1996 .

[19]  Francis W. Ahking The Dollar/Pound Exchange Rate in the 1920s: An Empirical Investigation , 1989 .

[20]  L. Ellram Total Cost of Ownership: Elements and Implementation , 1993 .

[21]  L Peng,et al.  THE GOVERNMENT'S ROLES IN PROMOTING LOGISTICS SERVICES IN CHINA , 1993 .

[22]  Hokey Min,et al.  Dynamic location and entry mode selection of multinational manufacturing facilities under uncertainty: A chance-constrained goal programming approach , 1996 .

[23]  Murat Köksalan,et al.  An integrated production and financial planning model and an application , 1996 .

[24]  Siddhartha S. Syam A model and methodologies for the location problem with logistical components , 2002, Comput. Oper. Res..

[25]  Mahmoud M. Yasin,et al.  THE FINANCIAL ASPECTS OF AGGREGATE PRODUCTION PLANNING: AN APPLICATION OF TIME-PROVEN TECHNIQUES , 2000 .

[26]  Kenneth A. Froot,et al.  Exchange Rates and Foreign Direct Investment: an Imperfect Capital Markets Approach , 1989 .

[27]  Vedat Verter,et al.  An integrated model for facility location and technology acquisition , 2002, Comput. Oper. Res..

[28]  M. Kotabe,et al.  Offshore Sourcing: Reaction, Maturation, and Consolidation of U.S. Multinationals , 1994 .

[29]  C. Davidson,et al.  Strategic Flexibility and Exchange Rate Uncertainty , 1996 .

[30]  P. Kotler Marketing Management: Analysis, Planning, Implementation and Control , 1972 .

[31]  Peter Isard Lessons from Empirical Models of Exchange Rates , 1987 .

[32]  L. Copeland,et al.  Exchange Rates and International Finance , 1989 .

[33]  Kenneth S. Rogoff,et al.  Exchange rate models of the seventies. Do they fit out of sample , 1983 .

[34]  C. L. Pomper,et al.  International investment planning: An integrated approach , 1976 .

[35]  Robert B. Handfield,et al.  Managing Component Life Cycles in Dynamic Technological Environments , 1994 .

[36]  James D. Gwartney Macroeconomics: Private and Public Choice , 1977 .

[37]  D. Upton The Management of Manufacturing Flexibility , 1994 .

[38]  Harper W. Boyd,et al.  Marketing management : a strategic approach , 1990 .

[39]  P. Haug A Multiple-Period, Mixed-Integer-Programming Model for Multinational Facility Location , 1985 .

[40]  Clarisse Dhaenens-Flipo,et al.  Spatial decomposition for a multi-facility production and distribution problem , 2000 .

[41]  Paul M. Swamidass,et al.  Import Sourcing Dynamics: An Integrative Perspective , 1993 .

[42]  Sameer Prasad,et al.  International purchasing, inventory management and logistics research: An assessment and agenda , 1998 .

[43]  Steven Nahmias,et al.  Production and operations analysis , 1992 .

[44]  Paul M. Swamidass,et al.  Component Sourcing Strategies of Multinationals: An Empirical Study of European and Japanese Multinationals , 1993 .

[45]  James E. Hodder,et al.  International plant location under price and exchange rate uncertainty , 1985 .

[46]  Bruce E. Mallen Selecting channels of distribution: a multi‐stage process , 1971 .

[47]  Leyland Pitt,et al.  Executive Insights: Virtual Services Go International: International Services in the Marketspace , 1999 .

[48]  Young-jin Choi,et al.  Success Factors for Transferring Technology to Spin-off Applications: the Case of The Technology Property Rights Concession Program in Korea , 2000 .

[49]  Gerd Finke,et al.  An Integrated Model for an Industrial Production–Distribution Problem , 2001 .

[50]  Lakis C. Kaounides,et al.  Science, Technology, and Global Competitive Advantage: The Strategic Implications of Emerging Technologies for Corporations and Nations , 1999 .

[51]  Vincent C. S. Wiers,et al.  The complexity of scheduling in practice , 1996 .

[52]  K. M. Allen THE ROLE OF LOGISTICS IN THE OVERSEAS PLANT SELECTION DECISION PROCESS OF UNITED STATES-BASED MULTINATIONAL CORPORATIONS , 1991 .

[53]  J. Choi,et al.  Exchange Risk Sensitivity and Its Determinants: A Firm and Industry Analysis of U.S. Multinationals , 1995 .

[54]  Siddhartha S. Syam Multiperiod Capacity Expansion in Globally Dispersed Regions , 2000, Decis. Sci..

[55]  K. Meyer International Production Networks and Enterprise Transformation in Central Europe , 2000 .

[56]  R. Vernon International investment and international trade in the product cycle , 1966 .

[57]  Roger W. Schmenner,et al.  Making Business Location Decisions , 1982 .

[58]  K. R. Kumar,et al.  Modeling manufacturing and marketing options in international operations , 2002 .

[59]  Pontus Braunerhjelm,et al.  Does Foreign Direct Investment Replace Home Country Investment? The Effect of European Integration on the Location of Swedish Investment , 2000 .

[60]  Sameer Prasad,et al.  International sourcing and logistics: an integrated model , 1999 .

[61]  Bert Meijboom,et al.  International manufacturing and location decisions: balancing configuration and co‐ordination aspects , 1997 .