Multi-plant Location with Respect to Uniform Pricing

Vedia F Dokmeci

The Annals of Regional Science, 1989, vol. 23, issue 1, 29-39

Abstract: This study develops a model to determine the optimal location of plants producing a single product on a non-homogenous plain. The mutual interdependence of price, demand, production cost and transportation cost is taken into consideration. Under uniform pricing and an uneven distribution of demand, the objective is to determine the maximum-profit location. No direct method exists to find the profit-maximizing solution. Therefore, the number, size and location of plants are determined using a step-wise heuristic approach.

Date: 1989
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