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Location selection for international production fragmentation using fuzzy TOPSIS: The regional economic integration in ASEAN
Sirawadee Arunyanart (a*), Panitas Sureeyatanapas (a), Kowit Ponhan (b), Weerapat Sessomboon (a)

a) Supply Chain and Logistics System Research Unit, Department of Industrial Engineering, Faculty of Engineering, Khon Kaen University, Khon Kaen, 40002, Thailand
*sirawadee[at]kku.ac.th
b) Faculty of Engineering, The University of Leicester, Leicester, LE7 1RH, UK


Abstract

The establishment of the ASEAN Economic Community (AEC), which facilitates the movement of goods, services, investments, capital and skills, not only increase trade and investment among member countries, but also promote and expand regional production sharing and network. Companies that look for appropriate places to locate their affiliates can take advantage of this economic integration by cross-border production sharing. Many industries in Thailand can also take an opportunity of fragmenting production processes to other countries, especially to CLMV countries (Cambodia, Laos, Myanmar and Vietnam) since there are several factors contributing these countries to be potential destinations for international production fragmentation. The aim of this paper is to find suitable destination country among CLMV for the production fragmentation of Thai electronics industry. Fuzzy multiple criteria decision-making methodology based on fuzzy TOPSIS (fuzzy technique for order preference by similarity to ideal solution) approach is applied in the selection of the destination country. By considering eighteen criteria including both quantitative and qualitative aspects, the result shows that Vietnam is the optimal destination country for fragmenting production of Thai electronics industry internationally.

Keywords: Location selection, International production fragmentation, Fuzzy TOPSIS, Electronics industry

Topic: Industrial Engineering

Link: https://ifory.id/abstract/xVpeFbrGyukH

Conference: Broad Exposure on Science and Technology (BEST 2019)

Plain Format | Corresponding Author (Sirawadee Arunyanart)

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