| Abstract: | This paper develops a location-production-allocation model for the multiplant producer selling under the conditions of nonlinear production costs and a uniform pricing system. The primary goals of this paper are to incorporate the following criteria into a model: (1) production factors and location factors should be synthesized into a location-production-allocation problem; (2) the production function is nonlinear, implying economies and diseconomies of scale; (3) a systems approach should be utilized to solve for a global optimum. Within the context of these criteria, equilibrium conditions are derived for a location-production-allocation model. Finally, a heuristic technique to solve this problem is derived from the equilibrium conditions. |
