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Strategic network planning for an international automotive manufacturer. (English)
OR Spectrum 31, No. 3, 507-532 (2009).
Summary: This article addresses the strategic network planning for international automotive manufacturers, in particular of premium cars. The focus is on the product to plant allocation and capacity expansion decisions for a given network design with fixed plant locations. A mixed integer program minimizing the net present value (NPV) of all capital expenditures and operational cost while incorporating flexibility of a network by a specific allocation structure (“chain”) is formulated. Computational illustrations on the influence of flexible allocation structures on the NPV are demonstrated considering changes in demand, exchange rates and total available capacity.
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