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Optimizing Subindustry Marketing Organizations: A Network Analysis Approach

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  • Stephen W. Fuller
  • Paul Randolph
  • Darwin Klingman

Abstract

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.

Suggested Citation

  • Stephen W. Fuller & Paul Randolph & Darwin Klingman, 1976. "Optimizing Subindustry Marketing Organizations: A Network Analysis Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(3), pages 425-436.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:3:p:425-436.
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    File URL: http://hdl.handle.net/10.2307/1239259
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    Cited by:

    1. McCarl, Bruce A. & Rister, M. Edward & Ward, Ruby & Long, Charles R. & McCorkle, Dean & Ziari, Houshmand & Conner, J. Richard & Sturdivant, Allen W. & Thompson, Troy N., 2000. "Strategie Agribusiness Operation Realignment in the Texas Prison System," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(1), pages 145-158, April.
    2. Shu, Kesheng & Schneider, Uwe A. & Scheffran, Jürgen, 2017. "Optimizing the bioenergy industry infrastructure: Transportation networks and bioenergy plant locations," Applied Energy, Elsevier, vol. 192(C), pages 247-261.
    3. 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.
    4. 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.
    5. Koo, Won W. & Marshall, Douglas D., 1985. "Optimal Grain Distribution System and Subterminal Capacity in North Dakota," Agricultural Economics Reports 23422, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Williams, Joseph E. & Meyer, Steve R. & Bullock, J. Bruce, 1983. "Interregional Competition In The U.S. Swine-Pork Industry: An Analysis Of Oklahoma'S And The Southern States' Expansion Potential," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-9, July.
    7. Pratt, James & Keniston, Maura & Novakovic, Andrew, 1989. "Geographic Price Relationships in the U.S. Fluid Milk Industry: A Mathematical Programming Analysis," Staff Papers 197573, Cornell University, Department of Applied Economics and Management.
    8. Borrell, Brent & Wong, Gordon, 1986. "Efficiency of transport, milling and handling in the sugar industry: a case study of the Mackay region," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 316178, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
    9. Pratt, James & Keniston, Maura & Novakovic, Andrew, 1989. "Geographic Price Relationships In The U.S. Fluid Milk Industry: A Mathematical Programming Analysis," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270486, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Keniston, Maura & Pratt, James E. & Stephenson, Mark W. & Novakovic, Andrew M., 1992. "Disaster Planning in the Dairy Industry: Conceptual Issues and a Spatial Modelling Approach," Staff Papers 121540, Cornell University, Department of Applied Economics and Management.
    11. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1978. "Network Flow Models: Use In Rural Freight Transportation Analysis And A Comparison With Linear Programming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-6, December.
    12. King, Richard A. & Dahlgran, Roger A. & McDermed, Ann A. & McPeters, David L., 1979. "Evaluation Of Alternative Plant Locations," Department of Economics and Business - Archive 259632, North Carolina State University, Department of Economics.

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