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Multiplant Location for Profit Maximisation

Author

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  • P Hansen

    (Institut d'Économie Scientifique et de Gestion, 1 rue F. Baes, 59000 Lille, France; and FUCAM, 151 chaussée de Binche, 7000 Mons, Belgium)

  • J-F Thisse

    (SPUR, Université Catholique de Louvain, 1 place du Levant, 1348 Louvain-la-Neuve, Belgium)

Abstract

Since many important firms operate several plants, the problem of the choice of an optimal pattern of locations for these plants is of interest. In this paper, multiplant location without interaction is studied. It is shown that it is sufficient to consider a finite number of particular sites to obtain an optimal pattern of plants. The distribution network of the output is then analysed, taking into account the technologies of the plants. Finally, a numerical method of resolution for the multiplant location problem, with increasing returns to scale in the production, is proposed.

Suggested Citation

  • P Hansen & J-F Thisse, 1977. "Multiplant Location for Profit Maximisation," Environment and Planning A, , vol. 9(1), pages 63-73, January.
    • Handle: RePEc:sae:envira:v:9:y:1977:i:1:p:63-73
    DOI: 10.1068/a090063
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    References listed on IDEAS

    as
    1. Basheer M. Khumawala, 1972. "An Efficient Branch and Bound Algorithm for the Warehouse Location Problem," Management Science, INFORMS, vol. 18(12), pages 718-731, August.
    2. Alan R. Beckenstein, 1975. "Scale Economies in the Multiplant Firm: Theory and Empirical Evidence," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 644-657, Autumn.
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    Cited by:

    1. Fabian Eckert & Costas Arkolakis, 2017. "Combinatorial Discrete Choice," 2017 Meeting Papers 249, Society for Economic Dynamics.
    2. Geunes, Joseph & Shen, Zuo-Jun Max & Emir, Akin, 2007. "Planning and approximation models for delivery route based services with price-sensitive demands," European Journal of Operational Research, Elsevier, vol. 183(1), pages 460-471, November.
    3. Lin, Yun Hui & Tian, Qingyun, 2023. "Facility location and pricing problem: Discretized mill price and exact algorithms," European Journal of Operational Research, Elsevier, vol. 308(2), pages 568-580.

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