Spatial investment allocation to manufacturing facilities with differential local environments

Sung Hoon Chung, Robert D. Weaver

Research output: Contribution to conferencePaperpeer-review


We present a computable theory of optimal profit allocation that may be used to determine a firm's investment plan to multiple manufacturing facilities that considers local financial, infrastructural, and labor force environments. In particular, we propose decision rules on distribution of profits derived from sales sector earnings. In addition, we introduce a productivity dynamics that allows us to consider optimal investments to fixed assets that is affected by the level of infrastructure in each facility. We also introduce a pollution dynamics to consider the generation of pollution as a result of production, which may be a threat to the environment, as well as to consider effective management of pollution. Finally, we employ sustainability condition constraints to guarantee the manageable level of pollution for sustainability. A numerical example is presented to illustrate use of our theory.

Original languageEnglish (US)
StatePublished - 2010
EventIIE Annual Conference and Expo 2010 - Cancun, Mexico
Duration: Jun 5 2010Jun 9 2010


OtherIIE Annual Conference and Expo 2010

All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering


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