Distribution network model using big data in an international environment

Abstract

This paper proposes dynamic mixed integer facility location model to design an international manufacturing network (IMN). The proposed model considers a broad facility network linking production and distribution facilities located internationally. The proposed model discussed in the paper assumes significance over the traditional manufacturing model as it provides a country specific analysis making it more convenient for the decision maker to devise country specific strategies within an international ecosystem. Therefore, the model considers import export cost, loan subsidies along with depreciation expense and other operating costs applicable to specific country. The objective of the model is to identify optimal facility locations and the production distribution in the entire network to meet the demand of global markets. The proposed model is illustrated and computationally tested using two cases. Model parameters are mapped using 3Vs of Big Data viz. Volume, Velocity and Variety.