Date of this Version
Published in Transactions of the Nebraska Academy of Sciences, Volume 1 (1972).
A method is presented for determining the optimal geographical location for a plant engaged in a specified manufacturing activity. The manufacturing activity is defined as the conversion of several raw material and sub-assemblies into a finished product. The optimal plant location is defined as the one which minimizes costs of shipping raw materials from various optional sources to the plant, the cost of shipping the finished product to specified markets, and the cost of labor involved in the assembly process. The method of solution is described, as is the computer program for implementing the method. Some illustrative examples are also given.
This project was suggested by a problem of the Industrial Research and Information Services of the Nebraska Department of Economic Development. The computer program described in the paper is a useful tool for investigating the relative merits of locating a manufacturing activity in an area such as Nebraska.