KPI evaluation system of location decision for plant relocation from the view of the entire supply chain optimization

Abstract

Plant location decision is important in supply chain design and optimization. Traditional evaluation of KPIs affecting one plant includes quality's and cost's aspects. Now the competitions between companies have changed to the competition between supply chains. This paper presents a new KPI evaluation system for plant relocation from the viewpoint of the entire supply chain optimization by considering the location quality, cost and flexibility of an entire supply chain. By applying the new KPI evaluation system for a plant relocation decision shows that this KPI evaluation system can help deciding the right location for plant relocation.