Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 137, Issue 2, Pages 336-347Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/S0377-2217(01)00138-2
Keywords
analytical network process; analytical hierarchy process; transshipment model; service operations; location
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The economic growth of countries in the Asia-Pacific (AP) region has caused many US-based businesses to consider the strategic initiative of setting up facilities therein. In this paper, we describe a study to locate a repair-parts warehouse for Digital Equipment Corporation, a world leader in the computer and electronics market. Digital's management was charged to consider not only the long-term strategic (or qualitative) issues typical of such problems, but they also had to ensure that any facility that is located would also be viable from a freight-cost (or quantitative) perspective. We show how the analytical network process (ANP) model combined with an optimization model can be used to conduct a comprehensive evaluation of these varied issues. (C) 2002 Elsevier Science B.V. All rights reserved.
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