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

Author

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  • Richard L. Kilmer
  • Thomas Spreen
  • Daniel S. Tilley

Abstract

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.

Suggested Citation

  • Richard L. Kilmer & Thomas Spreen & Daniel S. Tilley, 1983. "A Dynamic Plant Location Model: The East Florida Fresh Citrus Packing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 730-737.
    • Handle: RePEc:oup:ajagec:v:65:y:1983:i:4:p:730-737.
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    File URL: http://hdl.handle.net/10.2307/1240461
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    Cited by:

    1. Kilmer, Richard L. & Armbruster, Walter J., 1984. "Methods For Evaluating Economic Efficiency In Agricultural Marketing," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-9, July.
    2. Tilley, Daniel S., 1989. "Value-Added Activities As A Rural Development Strategy: Discussion," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-4, July.
    3. Walkenhorst, P., 2000. "Handelsliberalisierung, abgeleitete Produktnachfrage und die Wettbewerbsfähigkeit der Agrarwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    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. Brown, Colin G. & Drynan, Ross G., 1986. "Plant Location Analysis Using Discrete Stochastic Programming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(1), pages 1-22, April.

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