ASEAN industrial projects: optimal location and time-phasing

Abstract

Introduction In this paper we discuss the necessary sustainance conditions of minimum efficient plant size, raw materials, power, water and other facilities which a number of large and medium-scale industrial projects would require from within the ASEAN region. For the projects which the region as a whole can satisfy the necessary sustainance conditions a mathematical programming model is developed to evaluate their optimal locations and time-phasing within the region. Since investments in large and medium-scale industrial projects are long term commitments and require large capital expenditure, a preinvestment analysis of this nature is of crucial importance. The output of this optimal location and time-phasing model, hopefully, would contribute towards the development of a more rational policy for the selection and location of ASEAN regional projects.