IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v30y1998i1p129-141.html
   My bibliography  Save this article

The Optimum Size of a Producer Service Firm Facing Uncertain Demand

Author

Listed:
  • D Phillips
  • A D MacPherson
  • B Lentnek

Abstract

In this paper we present a theory of optimum size and number of clients for a producer service firm performing maintenance and repair services for clients in the manufacturing sector. The theory holds that scale economies vary directly with the level of contact requirements for service delivery. This is illustrated by a model of a monopoly repair specialist in which frequency of breakdown (and therefore client demand for service) is stochastic. Comparative statics are used to draw testable hypotheses from the model which, if extended to a multisite case, may serve as a portion of a general model of producer service location.

Suggested Citation

  • D Phillips & A D MacPherson & B Lentnek, 1998. "The Optimum Size of a Producer Service Firm Facing Uncertain Demand," Environment and Planning A, , vol. 30(1), pages 129-141, January.
    • Handle: RePEc:sae:envira:v:30:y:1998:i:1:p:129-141
    DOI: 10.1068/a300129
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a300129
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a300129?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adrian Esparza & Andrew J. Krmenec, 1994. "Business Services In The Space Economy: A Model Of Spatial Interaction," Papers in Regional Science, Wiley Blackwell, vol. 73(1), pages 55-72, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Bennett & William Bratton & Paul Robson, 2000. "Business Advice: The Influence of Distance," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 813-828.
    2. Robert J. Bennett & Colin Smith, 2004. "SPATIAL MARKETS FOR CONSULTANCY TO SMEs," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 359-374, September.
    3. Makoto Okumura & Makoto Tsukai, 2014. "Business service location with spatially stochastic demands: agglomeration economies generated by interaction costs and localized uncertain demand – an optimal stock location model approach," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 7, pages 160-179, Edward Elgar Publishing.
    4. Piet H. Pellenbarg & Paul J. M. Van Steen, 2004. "The Netherlands in Maps," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(3), pages 355-355, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brigitte Waldorf, 2003. "Spatial Patterns and Processes in a Longitudinal Framework," International Regional Science Review, , vol. 26(3), pages 269-288, July.
    2. Waldorf, Brigitte, 2002. "Spatial hazard models: limitations and applications," ERSA conference papers ersa02p497, European Regional Science Association.
    3. Stephen F. Seninger, 2000. "Consumer Information and Market-area Competition for Health-care Services," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 579-591, March.
    4. Joseph J. Persky & Marc Doussard & Wim Wiewel, 2009. "Export Orientation and the Limits to Local Sovereignty," Urban Studies, Urban Studies Journal Limited, vol. 46(3), pages 519-536, March.
    5. Taha H. Rashidi & Abolfazl (Kouros) Mohammadian, 2015. "Behavioral Housing Search Choice Set Formation," International Regional Science Review, , vol. 38(2), pages 151-170, April.
    6. Breandán hUallacháin & Der-Shiuan Lee, 2014. "Urban centers and networks of co-invention in American biotechnology," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 799-823, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:30:y:1998:i:1:p:129-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.