Abstract

Purpose: This research is to determine the optimal location of rubber processing plants in North East Thailand, and aim to design a supply chain network from the central rubber market, processing plants, and export to customs checkpoints, train stations, and ports in Thailand. Research design and Methodology: Thisresearch integrates center of gravity and location-allocation problem analysis using a Distribution science Geographic Information system (GIS), to find the most suitable factory location and leading to the design of a supply chain network that hasthe shortest duration and distance. Results: The scenario analysis, if entrepreneurs invest in building only 1 factory in upper North East Thailand, the factory in Sakon Nakhon province will be selected. If entrepreneurs invest in constructing 2 factories in the upper northeastern region, the factory in Bueng Kan Province and the factory in Loei Province will be selected. If entrepreneurs choose to invest in the construction of only 1 factory in the lower northeast region, Buriram Province will be chosen. In addition, entrepreneurs must consider land costs when deciding on the most appropriate factory location. Conclusion: This research may help entrepreneurs design the supply chain network, considering the distance related to transport costs and land costs in North East Thailand.