Facility location planning to mitigate strategic conflict in joint operations

Abstract

PurposeThis 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/approachThis 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.FindingsThe 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/implicationsThe model can be expanded incorporating other quantitative and qualitative factors such as tax incentives by the government, local bodies and government regulations.Practical implicationsThe applicability of the model is not limited to JOs or oil/gas field, but is applicable to a wide range of sectors.Originality/valueThe 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.