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A STUDY OF THE OPTIMUM LOCATION OF MANUFACTURING ACTIVITIES IN THE AIR COMPRESSOR INDUSTRY
Abstract
Economics has traditionally been defined as the science of the allocation of scarce resources to different channels of production in order to provide goods and services. The resource allocation problem can be solved by the market mechanism. The markets and the prevailing prices provide signals for the most justified branches of economic activities and hence for the optimum and efficient allocation of resources and economic inputs. Problems of allocation arise when the level of certain activities compete for scale resources necessary to perform those activities. The location of production activities is one aspect of optimal resource allocation. Production can take place at various points and consumers typically are located in different areas. This dissertation is concerned with the development of a method for evaluating comparative location advantages and production costs in selected states for one product: air compressors. The specific goals of the dissertation are: (1) to establish a method for evaluating comparative location advantages for air compressors; (2) to determine whether the comparative location advantages will be altered by population shifts, and (3) to derive a method capable of analyzing the relative importance of production costs and transportation costs in the determination of comparative location advantages. The final goal of this dissertation is to estimate minimum total costs as defined (production costs and transportation costs) and to seek an optimal solution for the air compressor industry, as represented in the model.
Subject Area
Business costs|Operations research
Recommended Citation
FADAEI-TEHRANI, REZA, "A STUDY OF THE OPTIMUM LOCATION OF MANUFACTURING ACTIVITIES IN THE AIR COMPRESSOR INDUSTRY" (1985). ETD collection for University of Nebraska-Lincoln. AAI8609799.
https://digitalcommons.unl.edu/dissertations/AAI8609799