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It demonstrated significant impacts of changes in the foreign exchange rate. Cohen and Moon [13] used a MIPS model to analyze impacts of changes in a firm’s cost environment. It was found that scale economies, scope economies, and transportation costs could alter optimal facility network design strategies. Vidal and Stagecoaches [14] analyzed impacts of uncertainties on global supply chains through a MIPS model. Foreign exchange rate was identified to be influential on global supply chain configurations.

Using a two-stage optimization model, Giuliani et al. [15] evaluated trade-offs between risk pooling and logistics costs in a multi-plant network with commonality. Their analyses showed that impacts of operational cost parameters may be significant and non-intuitive. All these models suggested that cost parameters have significant impacts on manufacturing facility location decisions, and may even alter supply chain configuration strategies. However, they only considered a single objective of profits or costs.

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The inconsideration of both costs and responsiveness was seen in the reconfiguration of global manufacturing and distribution network at Digital Equipment Corporation. It used a bi-objective model to minimize total costs and activity days. The model was implemented successfully with savings over $1 00 million [10]. However, the application did not explore impacts of changes in cost parameters. Overall, there is a lack of using a bi-objective approach to analyze impacts of business environment changes on the configuration of Guns.

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