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

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.

• 저널Management Science · 11(2) · 213–235
• 토픽Advanced Manufacturing and Logistics Optimization · Industrial and Manufacturing Engineering
• DOI10.1287/mnsc.11.2.213
• 저자Alan S. Manne