Plant Location Models for a Honey Packer: Sensitivity of Findings to Some Alternative Specifications with Reference to the South

Abstract

This paper discusses plant location models applied to a honey processing-marketing cooperative firm with emphasis on sensitivity of findings to some alternative objectives and specifications. Though the study was nationwide in scope, the southern regions of the United States played a significant role in the analyses.The first objective was to determine the number, size, and location of honey processing plants which would minimize total assembly, processing, and product shipment cost. In pursuit of the first objective, two of several questions receiving consideration were: 1. In comparing an optimizing least-cost result to an actual operating cost result, what is a valid specification of “actual” cost? 2. Is there a simple way of checking on the validity of a minimum cost solution?