Programming Global Strategy to Maximize Net Income Modeling Legal Conditions and Corporate Values

Abstract

Planning has always been a challenge for managers and decision makers. In particular, if the manufacturing facilities are located in several countries, significant differences in tax and legal requirements have to be taken into consideration during the process. Corporate policies regarding profit sharing schemes will also play a role in final income. This work proposes a production planning systematic approach based on mathematical programming models applied to income statements in order to allocate production for the next operating period of time taking into account the mathematical modeling of corporate ethics, principles and values. Several manufacturing facilities located in different countries have to produce forecasted demand of a number of families of products, each of which can only be manufactured in a reduced subset of all the manufacturing plants. This production assignment process seeks to maximize corporate net income while complying with local regulations and corporate policies. Investors will find models useful for evaluating new plant and product allocation schemes.