A Dynamic Plant Location Model: The East Florida Fresh Citrus Packing Industry | Zendy

Kilmer Richard L. | Zendy; Spreen Thomas | Zendy; Tilley Daniel S. | Zendy

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A Dynamic Plant Location Model: The East Florida Fresh Citrus Packing Industry

Author(s) -

Kilmer Richard L.,

Spreen Thomas,

Tilley Daniel S.

Publication year - 1983

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 - 10.2307/1240461

Subject(s) - investment (military) , transshipment (information security) , dynamic programming , location model , computer science , mathematical optimization , operations research , mathematics , politics , political science , law

Static location models provide a long‐run solution without the adjustments required over time. Dynamic programming allows incorporation of short‐ and long‐run adjustments in the same plant location model. A standard transshipment model with fixed quantities at supply and demand points is integrated with a dynamic program. Results indicate new large packinghouses are (are not) competitive with existing small (large) packinghouses even though (because) existing plants can forego a return on investment for a finite period.

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