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

Richard L. Kilmer, Thomas Spreen and Daniel S. Tilley

American Journal of Agricultural Economics, 1983, vol. 65, issue 4, 730-737

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.

Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:65:y:1983:i:4:p:730-737.

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