Premium
Optimizing Subindustry Marketing Organizations: A Network Analysis Approach
Author(s) -
Fuller Stephen W.,
Randolph Paul,
Klingman Darwin
Publication year - 1976
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239259
Subject(s) - enumeration , piecewise linear function , variable cost , mathematical optimization , computer science , fixed cost , integer (computer science) , flow network , variable (mathematics) , piecewise , scale (ratio) , operations research , mathematics , economics , microeconomics , mathematical analysis , physics , geometry , combinatorics , quantum mechanics , programming language
A technique for solving large‐scale mixed‐integer plant‐location problems is developed and utilized. The plant‐location problem is formulated as a minimum‐cost‐flow network problem and solved with a special purpose network code in conjunction with implicit enumeration. Implicit enumeration reduces the number of plant combinations that need to be examined. The technique was applied to resolve a cotton‐ginning subindustry's least‐cost organizational adjustment to exogenous factors and involved consideration of short‐run plant costs that were piecewise linear with fixed charges, two‐levels of variable labor cost, storage costs, and assembly costs.