Hub Location at Digital Equipment Corporation: A Comprehensive Analysis of Qualitative and Quantitative Factors

Joseph Sarkis and R.P. Sundarraj

European Journal of Operational Research, Vol. 137, No. 2, pp. 336-347, 2002.

The economic growth of countries in the Asia-Pacific 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 model combined with an optimization model can be used to conduct a comprehensive evaluation of these varied issues.


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