Impacts of Business Environment Change Essay

IP/MIP techniques have been used most often to aid add together chain configuration decisions and there have been many successful applications 9. devil recent articles 9 11 made comprehensive reviews about facility location models applicable to global manufacturing operations. This review section focuses on optimization models which are nearly related with impacts of business surround approach parameters on the design of manufacturing networks. Cohen and lee 12 developed a MIP model for a global manufacturing and distribution network. It demonstrate significant impacts of changes in the foreign exchange rate. Cohen and Moon 13 used a MIP model to analyze impacts of changes in a firms cost environment. It was found that scale economies, scope economies, and transportation be could alter best facility network design strategies. Vidal and Goetschalckx 14 analyzed impacts of uncertainties on global supplement chains through a MIP model.Foreign exchange rate was set to be influ ential on global supply chain configurations. using a two-stage optimization model, Kulkarni et al. 15 evaluated trade-offs between risk pooling and logistics costs in a multi-plant network with commonality. Their analyses showed that impacts of operational cost parameters whitethorn be significant and non-intuitive. any these models suggested that cost parameters have significant impacts on manufacturing facility location decisions, and may even alter supply chain configuration strategies. However, they only considered a single objective of profits or costs.The consideration of both costs and responsiveness was seen in the reconfiguration of global manufacturing and distribution network at digital Equipment Corporation. It used a bi-objective model to minimize total costs and activeness days. The model was implemented successfully with savings over $100 trillion 10. However, the application did not explore impacts of changes in cost parameters. Overall, there is a lack of using a bi-objective approach to analyze impacts of business environment changes on the configuration of GMNs.