Resource deployment analysis of global manufacturing and distribution networks

This paper presents a normative model for resource deployment decisions in a global manufacturing and distribution network. This model can be used to support analysis of global manufacturing policies. The objective of global after-tax profit is maximized through the design of the facility network and control of material flows within the network. Its constraints include facility capacity, regional demand requirements, material balance, and government offset requirements. The cost structure contains variable and fixed costs for material procurement, production, distribution, and transportation. The model also accounts for tariffs, duties, and transfer pricing. The authors report on the results of applying the model to the analysis of global manufacturing strategies for a personal computer manufacturer.