MULTI PRODUCT PLANT LOCATION UNDER ECONOMICS OF SCALE IN PRODUCTION AND TRANSPORTATION.
CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP
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There are M markets each with a fixed demand for each of K different products or commodities. P possible plant sites are under consideration. Demand must be satisfied for each product. At each plant site there are continuous economics of scale jointly across all products manufactured there. Similarly there are quantity discounts in transporting each product from each plant site to each market. An exact solution technique is presented to find the plant capacities for each product that minimize total production plus transportation cost. This is a one period analysis, made under certainty. Author
- Administration and Management
- Economics and Cost Analysis
- Operations Research