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Article
Publication date: 11 May 2023

Sanjib Chowdhury

This paper aims to deal with a real-life strategic conflict in joint operations (JOs) for facility location decision and planning in an oil and gas field that stretches over two…

Abstract

Purpose

This paper aims to deal with a real-life strategic conflict in joint operations (JOs) for facility location decision and planning in an oil and gas field that stretches over two countries and tries to develop a basis for mitigating such conflict.

Design/methodology/approach

This paper develops a novel approach using integer linear programming (ILP) to determine optimal facility location considering technical, economic and environmental factors. Strategic decision-making in JOs is also influenced by business priorities of individual partner, sociopolitical issues and other covert factors. The cost-related quantitative factors are normalized using inverse normalization function as these are to be minimized, and qualitative factors that are multi-decision-making criteria are maximized, thus transforming both qualitative and quantitative factors as a single objective of maximization in ILP model.

Findings

The model identifies the most suitable facility location based on a wide range of factors that would provide maximum benefit in the long term, which will help decision-makers and managers.

Research limitations/implications

The model can be expanded incorporating other quantitative and qualitative factors such as tax incentives by the government, local bodies and government regulations.

Practical implications

The applicability of the model is not limited to JOs or oil/gas field, but is applicable to a wide range of sectors.

Originality/value

The model is transparent and based on rational and scientific basis, which would help in building consensus among the dissenting parties and aid in mitigating strategic conflict. Such type of model for mitigating strategic conflict has not been reported/used before.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 17 May 2013

Andreas Feldmann and Jan Olhager

The purpose of this paper is to investigate the strategic role of plants, in terms of the type and level of site competence, the relationship with the strategic reason for location

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Abstract

Purpose

The purpose of this paper is to investigate the strategic role of plants, in terms of the type and level of site competence, the relationship with the strategic reason for location, and the impact on operational performance.

Design/methodology/approach

The authors use a survey of 103 Swedish manufacturing plants that belong to global production networks and analyze patterns within this context to identify potential archetypes of plants with respect to plant roles, based on factor analysis and cluster analysis.

Findings

It is found that the areas of site competence can be grouped into three bundles, characterized thematically as production‐related, supply chain‐related and development‐related. The plants fall into three categories: some plants have only production‐related competences, some have competences concerning both production and supply chain, and the third group of plants possesses all three bundles of competences.

Research limitations/implications

The results provide empirical evidence that site competences come in bundles in three steps according to themes rather than individually. No significant relationship was found between the level of site competence and the strategic reason for site location.

Practical implications

The results provide empirical support for the co‐location of product development and production, since plants with full responsibility for all competence bundles significantly outperform plants having only production‐related competences on cost efficiency, quality, and new product introductions.

Originality/value

The authors research patterns of site competence at a more detailed level than before in the related literature, as well as study the impact on performance, which has not been done before.

Details

International Journal of Operations & Production Management, vol. 33 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 May 2009

Jason Henderson and Brent A. Gloy

Corn ethanol plants consume large amounts of corn and their location has the potential to alter local crop prices and surrounding agricultural land values. The purpose of this…

Abstract

Purpose

Corn ethanol plants consume large amounts of corn and their location has the potential to alter local crop prices and surrounding agricultural land values. The purpose of this paper is to analyze the local economic impact of ethanol plant locations on farmland values.

Design/methodology/approach

The relationship between ethanol plant location and agricultural land prices is examined using data obtained from the Agricultural Credit Survey administered by the Federal Reserve Bank of Kansas City.

Findings

The findings indicate that ethanol plant location has had an impact on land values. The portion of land price changes attributable to location is consistent with previous estimates of basis changes associated with ethanol plant location.

Originality/value

The paper finds that land markets appear to be rationally adjusting to the location of ethanol plants.

Details

Agricultural Finance Review, vol. 69 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 1 April 2014

Yun Seng Lim, Siong Lee Koh and Stella Morris

Biomass waste can be used as fuel in biomass power plants to generate electricity. It is a type of renewable energy widely available in Malaysia because 12 million tons of the…

Abstract

Purpose

Biomass waste can be used as fuel in biomass power plants to generate electricity. It is a type of renewable energy widely available in Malaysia because 12 million tons of the biomass waste is produced every year. At present, only 5 per cent of the total biomass waste in Sabah, one of the states in Malaysia, is used to generate electricity for on-site consumption. The remaining 95 per cent of the biomass waste has not been utilized because the transportation cost for shifting the waste from the plantations to the power plants is substantial, hence making the cost of the biomass generated electricity to be high. Therefore, a methodology is developed and presented in this paper to determine the optimum geographic distribution and capacities of the biomass power plants around a region so that the cost of biomass generated electricity can be minimized. The paper aims to discuss these issues.

Design/methodology/approach

The methodology is able to identify the potential locations of biomass power plants on any locations on a region taking into account the operation and capital costs of the power plants as well as the cost of connecting the power plants to the national grid. The methodology is programmed using Fortran.

Findings

This methodology is applied to Sabah using the real data. The results generated from the methodology show the best locations and capacities of biomass power plants in Sabah. There are 20 locations suitable for biomass power plants. The total capacity of these biomass power plants is 4,996 MW with an annual generation of 35,013 GWh. This is sufficient to meet all the electricity demand in Sabah up to 2030.

Originality/value

The methodology is an effective tool to determine the best geographic locations and sizes of the biomass power plants around a region.

Details

International Journal of Energy Sector Management, vol. 8 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Book part
Publication date: 12 November 2018

Rabello Rômulo Louzada, Regis Mauri Geraldo and Mattos Ribeiro Glaydston

This chapter proposes a hybrid heuristic method combining a clustering search (CS) metaheuristic with an exact algorithm to solve a two-stage capacitated facility location problem…

Abstract

This chapter proposes a hybrid heuristic method combining a clustering search (CS) metaheuristic with an exact algorithm to solve a two-stage capacitated facility location problem (TSCFLP). The TSCFLP consists of defining the optimal locations of plants and depots and the product flow from plants to depots (first stage) and from depots to customers (second stage). The problem deals commonly with cargo transportation in which products must be transported from a set of plants to meet customers’ demands passing out by intermediate depots. The main decisions to be made are related to define which plants and depots must be opened from a given set of potential locations, which customer to assign to each one of the opened depots, and the amount of product flow from the plants to the depots and from the depots to the customers. The objective is to minimize costs satisfying demand and capacity constraints. Computational results demonstrate that our method was able to find good solutions when comparing it directly with a commercial solver and a genetic algorithm (GA) reported in a recent chapter found in the literature, requiring less than 1.5% and 41% of the computational time performed by these methods, respectively. Thus, our hybrid method combining CS with an exact algorithm can be considered as a new matheuristic to solve the TSCFLP.

Details

Supply Chain Management and Logistics in Latin America
Type: Book
ISBN: 978-1-78756-804-4

Keywords

Article
Publication date: 17 January 2023

M. Puviarasu, P. Asokan, S. Umar Sherif, K. Mathiyazhagan and P. Sasikumar

Increased demand for new batteries and strict government protocols have stressed the battery industries to collect and recycle used batteries for economic and environmental…

Abstract

Purpose

Increased demand for new batteries and strict government protocols have stressed the battery industries to collect and recycle used batteries for economic and environmental benefits. This scenario has forced the battery industries to collect used batteries and establish the formal battery recycling plant (BRP) for effective recycling. The starting of BRP includes several strategic decisions, one of the most critical decisions encountered is to find the best sustainable location for BRP. Hence, this paper aims to address the complexity of the issues faced during the BRP location selection through a hybrid framework.

Design/methodology/approach

In this study, the criteria are identified under socio-cultural, technical, environmental, economic and policy and legal (STEEP) dimensions through literature review and experts' opinions. Then, the hybrid methodology integrating fuzzy decision making trial and evaluation laboratory (DEMATEL), best worst method (BWM) and technique for order preference by similarity to an ideal solution (TOPSIS) has been proposed to find the inter-relationship between criteria, the weights of criteria and the best alternative.

Findings

The identified five main criteria and 26 sub-criteria have been analyzed through fuzzy DEMATEL, and found that the policy and legal criteria have more inter-relationship with other criteria. Then from BWM results, it is found that the support from government bodies has attained the maximum weightage. Finally, the second alternative has been identified as a more suitable location for establishing BRP using TOPSIS. Further, it is found from the results that the support from government bodies, the impact of emissions, availability of basic facilities and community health are the essential criteria under STEEP dimensions for establishing BRP.

Originality/value

In addition to the various existing sustainable criteria, this study has also considered a set of policy and legal criteria for the evaluation of locations for BRP. Further, the hybrid MCDM method has been proposed in this study for selecting the best alternative. Thus, this study has yielded more insights to the decision-makers in choosing a sustainable location for BRP.

Details

Journal of Advances in Management Research, vol. 20 no. 2
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 7 September 2020

Balan Sundarakani, Vijay Pereira and Alessio Ishizaka

Facility location and re-location decisions are critical managerial decisions in modern supply chains. Such decisions are difficult in this environment as managers encounter…

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Abstract

Purpose

Facility location and re-location decisions are critical managerial decisions in modern supply chains. Such decisions are difficult in this environment as managers encounter uncertainty and risks. The study investigates establishing or moving distribution facilities in the global supply chain by considering costs, fulfilment, trade uncertainties, risks under environmental trade-offs and disruptive technologies.

Design/methodology/approach

This paper combines the possibilities and probabilistic scenarios for a supply chain network by proposing the novel Robust Optimisation and Mixed Integer Linear Programming (ROMILP) method developed under the potential uncertainty of demand while considering the costs associated with a four-tier supply chain network. ROMILP has been solved in a real-time logistics environment by applying a case study approach.

Findings

The solution is obtained using an exact solution approach and provides optimality in all tested market scenarios along the proposed global logistics corridor. A sensitivity analysis examines potential facility location scenarios in a global supply chain context.

Research limitations/implications

Logistics managers can apply the ROMILP model to test the cost-benefit trade-offs against their facility location and relocation decisions while operating under uncertainty. Future research is proposed to extend the literature by applying data from the OBOR logistics corridor.

Originality/value

This study is the first to examine sustainable dimensions along the global logistics corridor and investigate the global container traffic perspective. The study also adds value to the Middle East logistics corridor regarding facility location decisions.

Details

The International Journal of Logistics Management, vol. 32 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 26 October 2012

B. Latha Shankar, S. Basavarajappa and Rajeshwar S. Kadadevaramath

The paper aims at the bi‐objective optimization of a two‐echelon distribution network model for facility location and capacity allocation where in a set of customer locations with…

Abstract

Purpose

The paper aims at the bi‐objective optimization of a two‐echelon distribution network model for facility location and capacity allocation where in a set of customer locations with demands and a set of candidate facility locations will be known in advance. The problem is to find the locations of the facilities and the shipment pattern between the facilities and the distribution centers (DCs) to minimize the combined facility location and shipment costs subject to a requirement that maximum customer demands be met.

Design/methodology/approach

To optimize the two objectives simultaneously, the location and distribution two‐echelon network model is mathematically represented in this paper considering the associated constraints, capacity, production and shipment costs and solved using hybrid multi‐objective particle swarm optimization (MOPSO) algorithm.

Findings

This paper shows that the heuristic based hybrid MOPSO algorithm can be used as an optimizer for characterizing the Pareto optimal front by computing well‐distributed non‐dominated solutions. These aolutions represent trade‐off solutions out of which an appropriate solution can be chosen according to industrial requirement.

Originality/value

Very few applications of hybrid MOPSO are mentioned in literature in the area of supply chain management. This paper addresses one of such applications.

Details

Journal of Modelling in Management, vol. 7 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 29 February 2008

María Teresa Ruiz‐Tagle

The purpose of this paper is to allow environmental policy makers to identify the sort of problems and obstacles and the kind of influences that firms face from different economic…

Abstract

Purpose

The purpose of this paper is to allow environmental policy makers to identify the sort of problems and obstacles and the kind of influences that firms face from different economic actors, when trying to improve their environmental performance. It aims to identify the actions that are taken by firms to cope with more difficult environmental regulations. These will help the regulator in the design of strategies to foster environmental improvements by firms.

Design/methodology/approach

This paper analyses some of the specific questions of an environmental management survey that was carried out in the manufacturing industry in Chile in 2001. A large number of variables from the survey were involved and they are hard to handle in such disaggregated terms. The factor analysis (FA) methodology is thus applied to reduce the information to a manageable number of variables.

Findings

The results of the FA methodology provide the regulator with fewer dimensions to concentrate on when designing environmental strategies, while they also provide an insight into each general area of concern. The indices of environmental performance that are developed in the paper contribute to the targeting of policy recommendations, as they allow comparisons of the levels of environmental performance between different sorts of manufacturing plants.

Practical implications

This paper helps to determine patterns of environmental performance in manufacturing firms, which are very helpful for environmental policy makers when designing strategies to foster environmental improvements by firms, particularly when countries are facing budget constraints. This case study could also be illustrative for other countries with similar characteristics.

Originality/value

The approach used in this paper allows environmental policy makers to count on certain indicators to efficiently target their environmental policies.

Details

Management of Environmental Quality: An International Journal, vol. 19 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 1 March 1979

Sang M. Lee and Lori Sharp Franz

The location‐allocation problem involves multiple shipping destinations, with known demands for a given product and known transportation costs from sources to destinations. The…

Abstract

The location‐allocation problem involves multiple shipping destinations, with known demands for a given product and known transportation costs from sources to destinations. The problem is to determine the number of facilities and their locations in order to best service the shipping destinations. This paper presents an approach to facility location which allows the analysis of multiple conflicting goals as an extension of previous solution approaches. Specifically, the paper applies the branch and bound integer goal programming approach to the location‐allocation problem.

Details

International Journal of Physical Distribution & Materials Management, vol. 9 no. 6
Type: Research Article
ISSN: 0269-8218

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