IDEAS home Printed from https://ideas.repec.org/a/spr/presci/v78y1999i3p243-263.html
   My bibliography  Save this article

articles: Logistics cost, consumer demand, and retail establishment density

Author

Listed:
  • Chaug-Ing Hsu

    () (Department of Transportation Engineering and Management, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu, Taiwan 30049, Republic of China)

  • I-Jin Tsai

    () (Department of Transportation Engineering and Management, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu, Taiwan 30049, Republic of China)

Abstract

This article develops models to formulate the optimal density of retail establishments by considering interactions between logistics cost and consumer demand. Commodities are assumed to be distributed from a depot directly or through single intermediate terminal to many retail establishments. Average logistic cost per item, consumer demand, and the interrelationship between them are analyzed. The optimal density of retail establishments and local terminals are determined by minimizing average logistic cost, or maximizing total supply subject to the demand-supply equality. The envelope curves for the optimal configuration strategies corresponding to different values of total market area and terminal cost are derived.

Suggested Citation

  • Chaug-Ing Hsu & I-Jin Tsai, 1999. "articles: Logistics cost, consumer demand, and retail establishment density," Papers in Regional Science, Springer;Regional Science Association International, vol. 78(3), pages 243-263.
  • Handle: RePEc:spr:presci:v:78:y:1999:i:3:p:243-263
    Note: Received: 3 October 1996
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/10110/papers/9078003/90780243.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alderighi, Marco & Piga, Claudio A., 2008. "Why should a firm choose to limit the size of its market area?," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 191-201, March.
    2. Li, Hui-Chieh, 2015. "Optimal delivery strategies considering carbon emissions, time-dependent demands and demand–supply interactions," European Journal of Operational Research, Elsevier, vol. 241(3), pages 739-748.
    3. Turkensteen, Marcel & Klose, Andreas, 2012. "Demand dispersion and logistics costs in one-to-many distribution systems," European Journal of Operational Research, Elsevier, vol. 223(2), pages 499-507.

    More about this item

    Keywords

    Logistics cost; consumer demand; retail establishment density; terminal; demand-supply interaction;

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:presci:v:78:y:1999:i:3:p:243-263. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.