Abstract
Many companies making CKD assembly in developing countries are facing a new set of decision making problems to adapt themselves to "Local Manufacturing Programs" which have been estavlished by local governments. This paper describes a procedure to solve one of the major problems mentioned above, or "selection of the parts ot be localized" under the condition where inclusion of some specific items is required by local givernments' regulations. After examining the characteristics of"cost penalty curves, " this paper proposes a procedure to select the parts to be localized with the minimum cost penarly from local assemblers' standpoint.
