Abstract
The facilities location problem for companies with global operations is very complex and not well explored in the literature. This work proposes a MILP model that solves the problem through minimization of the total logistic cost. Main contributions of the model are the pioneer carrying cost calculation, the treatment given to the take-or-pay costs and to the international tax benefits such as drawback and added value taxes in Brazil. The model was successfully applied to a real case of a chemical industry with industrial plants and sales all over the world. The model application recommended a totally new sourcing model for the company.
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Hamad, R., Fares Gualda, N.D. Model for Facilities or Vendors Location in a Global Scale Considering Several Echelons in the Chain. Netw Spat Econ 8, 297–307 (2008). https://doi.org/10.1007/s11067-007-9055-2
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DOI: https://doi.org/10.1007/s11067-007-9055-2