Locating manufacturing and distribution centers: An integrated supply chain-based spatial interaction approach

Abstract

This study investigates the facility location problem of transnational personal computer (PC) manufacturing for the domestic market of China. An integrated supply chain-based spatial interaction model is formulated to determine facility locations of the transnational PC manufacturing centers and regional product distribution centers in China, with the goal of maximizing the potential rate of return on facility investment. The numerical results show that the Shanghai municipality is ranked highest for siting both the manufacturing and distribution centers for a transnational PC manufacturing enterprise. (C) 2003 Elsevier Ltd. All rights reserved.