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Sensitivity Testing and the Plant Location Problem

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Listed:
  • H. I. Toft
  • P. A. Cassidy
  • W. O. McCarthy

Abstract

A wide range of models and and solution procedures are now available to the analyst concerned with plant or warehouse location problems. While these produce an optimal solution, no explicit statement is usually made about solution stability. One large group of models concerned with size and siting problems uses the transportation model of linear programming as a solution procedure. This paper presents a method of testing the stability of such solutions. The problem outlined here concerns a plant location study and explicitly examines processing cost variations. However, the sensitivity test used can be applied in general to any cost elements of a transportation problem matrix.

Suggested Citation

  • H. I. Toft & P. A. Cassidy & W. O. McCarthy, 1970. "Sensitivity Testing and the Plant Location Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(3), pages 403-410.
    • Handle: RePEc:oup:ajagec:v:52:y:1970:i:3:p:403-410.
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    File URL: http://hdl.handle.net/10.2307/1237392
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    Cited by:

    1. MacKay, D.R. & Toft, H.I., 1978. "An Application of Spatial Equilibrium Analysis to the Transport and Processing of Wholemilk in N.S.W," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 46(01), pages 1-18, April.
    2. 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.

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