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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.