Cohen and Lee [10] present a deterministic,
mixed integer, non-linear mathematical programming
model, based on economic order quantity
(EOQ) techniques, to develop what the authors
refer to as a ªglobal resource deploymentº policy.
More speciÞcally, the objective function used in
their model maximizes the total after-tax proÞt for
the manufacturing facilities and distribution
centers (total revenue less total before-tax costs less
taxes due). This objective function is subject to
a number of constraints, including ªmanagerial
constraintsº (resource and production constraints) and ªlogical consistency constraintsº (feasibility,
availability, demand limits, and variable nonnegativity).
The outputs resulting from their model
include [11]:
f Assignments for Þnished products and subassemblies
to manufacturing plants, vendors to
distribution centers, distribution centers to market
regions.
f Amounts of components, subassemblies, and
Þnal products to be shipped among the vendors,
manufacturing facilities, and distribution centers.
f Amounts of components, subassemblies, and
Þnal products to be manufactured at the manufacturing
facilities.