Design of a global car production‐logistics system for a future ASEAN‐China region Available to Purchase

In this paper, a systematic design procedure for an international mutual parts supply system for global car manufacturing is proposed and investigated. This procedure offers a rational way to determine the production countries of individual parts/components as well as the import countries for their procurement operations. The proposed procedure consists of three major steps, mathematical programming model development for minimum cost production‐logistic network design, database construction for model analysis and execution of mathematical programming model to obtain a recommendable global production‐logistics system. Actual data from the ASEAN‐China region are collected and processed by the proposed procedure for validity analysis. The results obtained through the investigation have confirmed the effectiveness of the procedure as a decision support model/database for designing such very large systems.