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Optimum Plant Numbers and Locations for Multiple Product Processing

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  • Leo Polopolus

Abstract

Extension of John Stollsteimer's one product model to encompass the multiple product case is the primary aim of the paper. Both the one and multiple product models attempt to determine the number, size, and location of plants that minimize combined transportation and processing costs. The multiple product model differs from Stollsteimer's model in that aggregate assembly costs are affected by varying locational patterns as the product dimension is increased and that total processing cost varies both with the number of plants and the combination of products handled at each optimum plant location. A comparison of one and multiple product processing of identical quantities of raw product results in an economic advantage for multiple product processing.

Suggested Citation

  • Leo Polopolus, 1965. "Optimum Plant Numbers and Locations for Multiple Product Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(2), pages 287-295.
    • Handle: RePEc:oup:ajagec:v:47:y:1965:i:2:p:287-295.
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    File URL: http://hdl.handle.net/10.2307/1236576
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    Citations

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    Cited by:

    1. Fuller, Stephen W., 1975. "A Modification Of The Modified Stollsteimer Location Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 7(1), pages 1-6, July.
    2. Moseley, Anne E. & Spreen, Thomas H. & Pheasant, Jim W., 1986. "A Mixed-Integer Programming Analysis of the Structure of a Florida-Based Cattle Feeding Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 125-138, December.
    3. M T Lucas & D Chhajed, 2004. "Applications of location analysis in agriculture: a survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 561-578, June.
    4. Graubner, Marten & Sexton, Richard J., 2021. "Spatial competition in agricultural procurement markets," 2021 Annual Meeting, August 1-3, Austin, Texas 313962, Agricultural and Applied Economics Association.
    5. Warrack, Allan Alexander, 1967. "Location analysis of the Iowa feed manufacturing industry: least-cost alternatives," ISU General Staff Papers 196701010800004436, Iowa State University, Department of Economics.
    6. Martin, Larry & Hedley, H.A., 1975. "An Analysis of Structural Change in the Ontario Feed Milling Sector," Working Papers 245020, University of Guelph, Department of Food, Agricultural and Resource Economics.
    7. Tyner, Fred H. & Campos, Roberto G., 1976. "Application Of The Transhipment Model To Development Of The Seed Industry In Northeast Brazil," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(2), pages 1-5, December.

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