The Generalized Market Area Problem

Timothy J. Lowe and Arthur P. Hurter, Jr.
Additional contact information
Timothy J. Lowe: University of Florida
Arthur P. Hurter, Jr.: Northwestern University

Management Science, 1976, vol. 22, issue 10, 1105-1115

Abstract: This paper considers the production-transportation problem of a firm with a finite number of production (supply) facilities of known location, facing demand distributed over a subset (market region) of K-dimensional Euclidean space. The demand for a single good is described by a demand density function which is continuous almost everywhere on the market region. Production cost functions exist at each production facility and transport cost functions refer to delivering the good from the production facility to the consumer. The objective is to set production at each production facility and to select a supply policy such that total production and transportation costs are minimized. The problem is formulated in its entirety and later simplified through suboptimization. Necessary conditions for an optimal solution are derived and economic interpretations are provided.

Date: 1976
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.22.10.1105 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:22:y:1976:i:10:p:1105-1115

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().