Abstract
We present a mixed integer linear formulation that extends published models on multinational corporation facility location decisions by including exogenous variables such as exchange rates and tariff rates and incorporating production, distribution, and investment decisions. The model provides insights on production levels; facility configurations, distribution strategies and levels of investment needed at these facilities and explores factors that influence the facility's configuration decisions. Several scenarios are considered based on various facility configurations and levels of exchange and tariff rates. The results obtained from these show that the model's performance and results are in complete agreement with accepted economic theories.
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