1990
DOI: 10.1287/mnsc.36.1.41
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Uncapacitated Plant Location Under Alternative Spatial Price Policies

Abstract: Given a spatial system of clients' demand functions, this paper proposes solution methods to determine the price(s), the number, the locations, the sizes, and the market areas of the plants supplying the clients in order to maximize the profit of the firm. Three alternative spatial price policies are considered: (i) uniform mill pricing, in which the same price is charged to the clients at the plant door, (ii) uniform delivered pricing, in which clients pay the same delivered price irrespective of their locati… Show more

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Cited by 68 publications
(22 citation statements)
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“…Unfortunately, because of the complexity of corresponding integrated optimization problems, there are few works to address this issue. Hansen et al (1997), Hanjoul et al (1990), Ahmadi-Javid and Hoseinpour (2015), Hansen et al (1981), Ahmadi-Javid and Ghandali (2014), and Wagner and Falkson (1975) addressed FL problems with price-sensitive demands in which location decisions should be taken for a single layer of a network in a single period FL problem. To the best of our knowledge, in the class of dynamic FL problems this paper addresses a problem with price-sensitive demands for the first time.…”
Section: Facility Location Problems With Price-sensitive Demandmentioning
confidence: 99%
“…Unfortunately, because of the complexity of corresponding integrated optimization problems, there are few works to address this issue. Hansen et al (1997), Hanjoul et al (1990), Ahmadi-Javid and Hoseinpour (2015), Hansen et al (1981), Ahmadi-Javid and Ghandali (2014), and Wagner and Falkson (1975) addressed FL problems with price-sensitive demands in which location decisions should be taken for a single layer of a network in a single period FL problem. To the best of our knowledge, in the class of dynamic FL problems this paper addresses a problem with price-sensitive demands for the first time.…”
Section: Facility Location Problems With Price-sensitive Demandmentioning
confidence: 99%
“…Norman (1981) shows that a monopolist with the objective to maximize sales revenue will prefer uniform pricing as long as demand elasticity rises with price. Hanjoul et al (1990) study the effect of uniform pricing on the location of firms.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Price-location modeling has been studied in a non-competitive model by Hanjoul et al (1990). They develop three incapacitated plant location models where different alternative spatial price policies are considered.…”
Section: Applications and Classificationsmentioning
confidence: 99%