Designing a Supply Chain Network for Rubber Exports: A Case Study in Northeast Thailand*
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Purpose: This research is to determine the optimal location of rubber processing plants in North East Thailand, and aim to design asupply chain network from the central rubber market, processing plants, and export to customs checkpoints, train stations, and ports inThailand. Research design and Methodology: Thisresearch integrates center of gravity and location-allocation problem analysis usinga Distribution science Geographic Information system (GIS), to find the most suitable factory location and leading to the design of asupply chain network that hasthe shortest duration and distance. Results: The scenario analysis, if entrepreneurs invest in building only1 factory in upper North East Thailand, the factory in Sakon Nakhon province will be selected. If entrepreneurs invest in constructing 2factories in the upper northeastern region, the factory in Bueng Kan Province and the factory in Loei Province will be selected. Ifentrepreneurs choose to invest in the construction of only 1 factory in the lower northeast region, Buriram Province will be chosen. Inaddition, entrepreneurs must consider land costs when deciding on the most appropriate factory location. Conclusion: This researchmay help entrepreneurs design the supply chain network, considering the distance related to transport costs and land costs in North EastThailand.
Abstract
Purpose: This research is to determine the optimal location of rubber processing plants in North East Thailand, and aim to design asupply chain network from the central rubber market, processing plants, and export to customs checkpoints, train stations, and ports inThailand. Research design and Methodology: Thisresearch integrates center of gravity and location-allocation problem analysis usinga Distribution science Geographic Information system (GIS), to find the most suitable factory location and leading to the design of asupply chain network that hasthe shortest duration and distance. Results: The scenario analysis, if entrepreneurs invest in building only1 factory in upper North East Thailand, the factory in Sakon Nakhon province will be selected. If entrepreneurs invest in constructing 2factories in the upper northeastern region, the factory in Bueng Kan Province and the factory in Loei Province will be selected. Ifentrepreneurs choose to invest in the construction of only 1 factory in the lower northeast region, Buriram Province will be chosen. Inaddition, entrepreneurs must consider land costs when deciding on the most appropriate factory location. Conclusion: This researchmay help entrepreneurs design the supply chain network, considering the distance related to transport costs and land costs in North EastThailand.