IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v32y1984i6p1374-1380.html
   My bibliography  Save this article

Technical Note—Financial Market Approaches to Facility Location under Uncertainty

Author

Listed:
  • James E. Hodder

    (Stanford University, Stanford, California)

Abstract

This paper examines financial market approaches for facility location models incorporating uncertainty and risk aversion. As an example, it compares a model based on the Capital Asset Pricing Model with one using a mean-variance objective function. There are dramatically different computational implications; the financial market approach yields simpler procedures and is able to handle more complex problems. However, as discussed in the concluding observations, there are situations where the financial market perspective is less appropriate; consequently, the mean-variance model still has a role in analyzing facility location decisions.

Suggested Citation

  • James E. Hodder, 1984. "Technical Note—Financial Market Approaches to Facility Location under Uncertainty," Operations Research, INFORMS, vol. 32(6), pages 1374-1380, December.
    • Handle: RePEc:inm:oropre:v:32:y:1984:i:6:p:1374-1380
    DOI: 10.1287/opre.32.6.1374
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.32.6.1374
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.32.6.1374?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiao Wang & Lima Zhao & Arnd Huchzermeier, 2021. "Operations‐Finance Interface in Risk Management: Research Evolution and Opportunities," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 355-389, February.
    2. K Sörensen, 2008. "Investigation of practical, robust and flexible decisions for facility location problems using tabu search and simulation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(5), pages 624-636, May.
    3. Song, Sangcheol & Lee, Seung-Hyun & Makhija, Mona, 2015. "Operational hedging in foreign direct investments under volatile and divergent exchange rates across countries," Journal of World Business, Elsevier, vol. 50(3), pages 548-557.
    4. Qing Ding & Lingxiu Dong & Panos Kouvelis, 2007. "On the Integration of Production and Financial Hedging Decisions in Global Markets," Operations Research, INFORMS, vol. 55(3), pages 470-489, June.
    5. Rosenfield, Donald B., 1996. "Global and variable cost manufacturing systems," European Journal of Operational Research, Elsevier, vol. 95(2), pages 325-343, December.
    6. Liu, Zugang & Nagurney, Anna, 2011. "Supply chain outsourcing under exchange rate risk and competition," Omega, Elsevier, vol. 39(5), pages 539-549, October.
    7. Burak Kazaz & Maqbool Dada & Herbert Moskowitz, 2005. "Global Production Planning Under Exchange-Rate Uncertainty," Management Science, INFORMS, vol. 51(7), pages 1101-1119, July.
    8. Taymaz, S. & Iyigun, C. & Bayindir, Z.P. & Dellaert, N.P., 2020. "A healthcare facility location problem for a multi-disease, multi-service environment under risk aversion," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    9. Liu, Zugang & Wang, Jia, 2019. "Supply chain network equilibrium with strategic financial hedging using futures," European Journal of Operational Research, Elsevier, vol. 272(3), pages 962-978.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:32:y:1984:i:6:p:1374-1380. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.