Multiplant Location for Profit Maximisation

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Abstract
Since many important firms operate several plants, the problem of the choice of an optimal pattern of locations for these plants is of interest. In this paper, multiplant location without interaction is studied. It is shown that it is sufficient to consider a finite number of particular sites to obtain an optimal pattern of plants. The distribution network of the output is then analysed, taking into account the technologies of the plants. Finally, a numerical method of resolution for the multiplant location problem, with increasing returns to scale in the production, is proposed.