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A foreign expansion model with multi-site locations in service industries

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  • Chang, Cheng-Chang
  • Chen, Ju-Long

Abstract

Capital budget constrained foreign expansion model with multi-site locations may have far-reaching implications for the service sectors. This paper aims to present a foreign expansion model with multi-site locations, which is capable of optimizing the commodity pricing and capital investment policy. Having found some properties of the model, we propose a solution method, which consists of the Newton–Raphson method and the technique of piecewise linear approximation. The results of proposed model may be beneficial for foreign expansion in services with regard to businesses like fast food, steak restaurant, café shops, and so on.

Suggested Citation

  • Chang, Cheng-Chang & Chen, Ju-Long, 2012. "A foreign expansion model with multi-site locations in service industries," International Journal of Production Economics, Elsevier, vol. 136(1), pages 102-109.
    • Handle: RePEc:eee:proeco:v:136:y:2012:i:1:p:102-109
    DOI: 10.1016/j.ijpe.2011.09.018
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