2013 Volume 20 Issue 1 Pages 91-96
In an increasingly globalized world, many researchers have examined the creation of a network structure to overcome physical difficulties. However, most researchers have focused on small and homogeneous networks such as an industrial complex in these domains. This is because physical factors of management, such as the geographical distances between production bases, generally create certain difficulties, including increased transportation costs and communication failures. However, geographical distances would be advantageous for production industries if they could create considerable added value by overcoming these physical difficulties. In this study, we suggest a manufacturing network for generating added value from geographical distance from the viewpoint of regional management resources. On the basis of network framework discussed here, we examine a computer simulation and a case study of a manufacturing company that constructed a next-generation network. Thus, we simulate the most suitable productive agglomeration network to create added value. We discuss this network as a means of optimizing the strategy of the manufacturing industry and define an objective function that represents the degree of geographical differences. On the basis of the results of computer simulations and a business world case study, the simulation results proved that added value did not rise infinitely by merely increasing the links.
