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Plant Location Under Economies-of-Scale--Decentralization and Computation

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  • Alan S. Manne

    (Stanford University)

Abstract

An exploration of the margin of error entailed in using a "one-point move" algorithm for solving a class of fixed-charge problems. The algorithm is of interest both from the viewpoint of numerical analysis and also from the analogy with market mechanisms. Despite the presence of economies-of-scale, there is the possibility of operating a decentralized system. This is a two-price system; it implies discriminatory and also marginal cost pricing.

Suggested Citation

  • Alan S. Manne, 1964. "Plant Location Under Economies-of-Scale--Decentralization and Computation," Management Science, INFORMS, vol. 11(2), pages 213-235, November.
    • Handle: RePEc:inm:ormnsc:v:11:y:1964:i:2:p:213-235
    DOI: 10.1287/mnsc.11.2.213
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    Cited by:

    1. J Brimberg & P Hansen & G Laporte & N Mladenović & D Urošević, 2008. "The maximum return-on-investment plant location problem with market share," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(3), pages 399-406, March.
    2. Thomas Byrne & Sándor P. Fekete & Jörg Kalcsics & Linda Kleist, 2023. "Competitive location problems: balanced facility location and the One-Round Manhattan Voronoi Game," Annals of Operations Research, Springer, vol. 321(1), pages 79-101, February.
    3. Ting L. Lei & Richard L. Church, 2014. "Vector Assignment Ordered Median Problem," International Regional Science Review, , vol. 37(2), pages 194-224, April.
    4. Daniel Serra & Charles Revelle, 1992. "The PQ-Median problem: Location and districting of hierarchical facilities. Part II: Heuristic solution methods," Economics Working Papers 13, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Saldanha-da-Gama, Francisco, 2022. "Facility Location in Logistics and Transportation: An enduring relationship," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    6. Hammami, Ramzi & Frein, Yannick & Hadj-Alouane, Atidel B., 2009. "A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study," International Journal of Production Economics, Elsevier, vol. 122(1), pages 351-365, November.
    7. Fabian Eckert & Costas Arkolakis, 2017. "Combinatorial Discrete Choice," 2017 Meeting Papers 249, Society for Economic Dynamics.
    8. Pratt, James E. & Bishop, Phillip M. & Erba, Eric M. & Novakovic, Andrew M. & Stephenson, Mark W., 1997. "A Description of the Methods and Data Employed in the U.S. Dairy Sector Simulator, Version 97.3," Research Bulletins 122723, Cornell University, Department of Applied Economics and Management.
    9. Charles L. Munson & Meir J. Rosenblatt, 1997. "The Impact Of Local Content Rules On Global Sourcing Decisions," Production and Operations Management, Production and Operations Management Society, vol. 6(3), pages 277-290, September.
    10. Bisera Andria Gusavac & Dragana Stojanovic & Zeljko Sokolovic, 2014. "Application Of Some Locational Models in Natural Resources Industry – Agriculture Case," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 62(8), pages 82-93, August.
    11. Lu Han & Dachuan Xu & Donglei Du & Dongmei Zhang, 2018. "A local search approximation algorithm for the uniform capacitated k-facility location problem," Journal of Combinatorial Optimization, Springer, vol. 35(2), pages 409-423, February.
    12. Byrne, Thomas & Kalcsics, Jörg, 2022. "Conditional facility location problems with continuous demand and a polygonal barrier," European Journal of Operational Research, Elsevier, vol. 296(1), pages 22-43.
    13. Lu Han & Dachuan Xu & Yicheng Xu & Dongmei Zhang, 2020. "Approximating the $$\tau $$ τ -relaxed soft capacitated facility location problem," Journal of Combinatorial Optimization, Springer, vol. 40(3), pages 848-860, October.
    14. King, Richard A. & Dahlgran, Roger A. & McDermed, Ann A. & McPeters, David L., 1979. "Evaluation Of Alternative Plant Locations," Department of Economics and Business - Archive 259632, North Carolina State University, Department of Economics.
    15. Märkle-Huß, Joscha & Feuerriegel, Stefan & Neumann, Dirk, 2020. "Cost minimization of large-scale infrastructure for electricity generation and transmission," Omega, Elsevier, vol. 96(C).
    16. Pierre Hansen & Jack Brimberg & Dragan Urošević & Nenad Mladenović, 2007. "Primal-Dual Variable Neighborhood Search for the Simple Plant-Location Problem," INFORMS Journal on Computing, INFORMS, vol. 19(4), pages 552-564, November.

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