Discontinuous Plant Cost Function and a Modification of the Stollsteimer Location Model

Chern, Wen-Shyong; Polopolus, Leo C.

doi:10.2307/1237266

Cited by 17 publications

(5 citation statements)

References 2 publications

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“…The heuristic procedure by Chern and Polopolus involves two steps [3]. The initial step involves a determination of the least-cost locational configurations; that is, the allocation of commodity or service at plant locations which minimizes total distribution cost for each subset, n, of the N source locations, where n < N. Second, the total distribution and source cost with respect to number of locations, number of sources and source size pattern is minimized.…”

Section: A Mathematical Statement Of the Problemmentioning

confidence: 99%

Supply Source Location Involving Fixed Charges and Economics of Scale: A Heuristic Approach

Fuller¹

1976

Review of Regional Studies

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This paper presents a model capable of accommodating plant location problems where 1) the long-run source or plant cost function exhibits a positive intercept (fixed charge), 2) the long-run plant cost function is discontinuous, and 3) there are economies of scale associated with increasing plant size. The model developed and presented here reverses the cost minimizing sequence of the Chern and Polopolus formulation, a model designed to include a discontinuous long-run plant cost function. For many types of plant location problems, the developed model (source location cost-sequencing model) will yield a lower cost solution than the Chern and Polopolus formulation.

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Section: A Mathematical Statement Of the Problemmentioning

confidence: 99%

Supply Source Location Involving Fixed Charges and Economics of Scale: A Heuristic Approach

Fuller¹

1976

Review of Regional Studies

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“…The Stollsteimer plant location Minimize: TTC = Z XijCijlLn model was used, since it is designed to solve such problems [8] . A recent modification of this model by for each Ln, subject to Chern and Polopolus [1] involves the substitution of a discontinuous plant cost function. However, the original formulation that specifies economies of scale z Xij=xi in plant operation but plant costs independent of j=l plant location was found to be appropriate for this problem.…”

Section: Figure 1 Accumulation Of Area Harvested and Processed Cottomentioning

confidence: 99%

Application of a Plant Location Model to an Area's Cotton Ginning Industry

Fuller

Washburn

1974

J. Agric. Appl. Econ.

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The conventional cotton marketing system includes characteristics that impair its efficiency. This paper reports on a study which examined the potential operational efficiency gains in that portion of the system which involved the flow of seed cotton from the field through the ginning process. Up to 70 percent of the annual production is harvested in three to four weeks; the rest is harvested and processed during the remaining 3 1/2 to 4 months of the ginning season.

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“…Researchers in this area, such as Chern and Polopolus (1970), have not delved into the determinants of optimal plant size because most of the processes that they have investigated (e.g., food processing and packing, warehousing) have not been characterized by much cross-sectional variation in transportation cost. Researchers in this area, such as Chern and Polopolus (1970), have not delved into the determinants of optimal plant size because most of the processes that they have investigated (e.g., food processing and packing, warehousing) have not been characterized by much cross-sectional variation in transportation cost.…”

mentioning

confidence: 99%

“…1. Researchers in this area, such as Chern and Polopolus (1970), have not delved into the determinants of optimal plant size because most of the processes that they have investigated (e.g., food processing and packing, warehousing) have not been characterized by much cross-sectional variation in transportation cost. In services that are more directly tied to consumers, such as food retailing and education, cross-sectional variation in transportation cost is much more important.…”

mentioning

confidence: 99%

A Model of Optimal Plant Size With an Application to the Demand for Cognitive Achievement and for School Size

Kenny

1982

Economic Inquiry

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A model oj optimal plant size is developed which predicts that 1) plants experience increasing returns to in-plants inputs, 2) the relative price of plant output is greater in rural areas than in urban areas, and 3) plants are larger in urban areas than in rural areas. The model's predictions appear to be consistent with behavior in a number of consumer services (e.g., grocery, movie, and library services). These predictions are more rigorously tested and are strongly supported when demand functions for cognitive achievement and for school size are estimated.These regressions also lend support to the quality-quantity model of fertility.

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Discontinuous Plant Cost Function and a Modification of the Stollsteimer Location Model

Cited by 17 publications

References 2 publications

Supply Source Location Involving Fixed Charges and Economics of Scale: A Heuristic Approach

Supply Source Location Involving Fixed Charges and Economics of Scale: A Heuristic Approach

Application of a Plant Location Model to an Area's Cotton Ginning Industry

A Model of Optimal Plant Size With an Application to the Demand for Cognitive Achievement and for School Size

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