13. Addressing Uncertainty in Emerging Economies through Facility Location Modeling
Invited abstract in session MD-48: Applications of Location Methods, stream Locational Analysis.
Monday, 14:30-16:00Room: Parkinson B09
Authors (first author is the speaker)
| 1. | Hasan Nur
|
| Information System and Operation Management, University of Auckland |
Abstract
Most facility location problem models have focused on applications in advanced economies, with limited attention to the distinct challenges faced by emerging economies. These economies are characterised by rapid economic, social, and political transitions, introducing unique uncertainties such as supply-demand fluctuations, price volatility, infrastructure constraints, accessibility issues, and policy changes. While uncertainties exist in all economies, their frequency, intensity, and impact tend to be greater in emerging economies, posing distinct challenges for modelling. This study presents a case study on determining the optimal locations for Nickel Industrial Parks in Indonesia, a country experiencing a significant nickel industry boom. To address the uncertainty inherent in emerging economies, a stochastic change constraint formulation is developed. Given the growing role of emerging economies in global supply chains and industrial development, this research contributes to a broader understanding of facility location modelling in these contexts, offering practical insights for policymakers and industries navigating complex strategic facility location decisions.
Keywords
- Location
- Stochastic Models
- Optimization Modeling
Status: accepted
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