Making Location Decision Based on Regional Industrial Capabilities: A Case of a Distributor

Abstract

This article presents a structured process to make facility location decisions based on regional industrial capabilities. It presents a framework for collecting business intelligence on major cities of the region of interest. In the next step, the collected business intelligence is incorporated into a quantitative decision analysis model for facility location. While the proposed framework is generic and builds on the existing international business and supply chain management literature, the article mainly focuses on the facility location problem of a distribution firm that is not well represented in the literature. Two cases—one each for new and established distributors who are trying to sell to the Mexican market—are presented in the article.

Keywords:

• distributor's decision analysis model
• facility location
• T-MEX consortium

Notes

¹ A report on “Industry Cluster Analysis for the Lower Rio Grande Valley, 2005” was provided to the T-Mex consortium researchers by Lower Rio Grande Valley Workforce Development Board. URL: http://www.twc.state.tx.us