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The Location‐Production‐Allocation Problem With Nonlinear Production Costs
Author(s) -
Osleeb Jeffrey P.,
Cromley Robert G.
Publication year - 1977
Publication title -
geographical analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 65
eISSN - 1538-4632
pISSN - 0016-7363
DOI - 10.1111/j.1538-4632.1977.tb00568.x
Subject(s) - diseconomies of scale , production (economics) , context (archaeology) , nonlinear system , mathematical optimization , heuristic , function (biology) , economics , computer science , scale (ratio) , microeconomics , operations research , economies of scale , mathematics , paleontology , physics , quantum mechanics , evolutionary biology , biology
This paper develops a location‐production‐allocation model for the multiplant producer selling under the conditions of nonlinear production costs and a uniform pricing system. The primary goals of this paper are to incorporate the following criteria into a model: (1) production factors and location factors should be synthesized into a location‐production‐allocation problem; (2) the production function is nonlinear, implying economies and diseconomies of scale; (3) a systems approach should be utilized to solve for a global optimum. Within the context of these criteria, equilibrium conditions are derived for a location‐production‐allocation model. Finally, a heuristic technique to solve this problem is derived from the equilibrium conditions.