Optimal locations of fresh produce aggregation facilities in the United States with scale economies

Houtian Ge, Stephan Goetz, Patrick Canning, Agnes Perez

Research output: Contribution to journalArticle

9 Scopus citations

Abstract

This article identifies through modeling the optimal locations of regional fresh produce facilities across the U.S. In contrast to much of the literature, we introduce establishment-level economies of scale to assess their impact on optimal solutions of facility locations, numbers and sizes. The facility location problem is formulated as a mixed integer linear programming model with the objective of minimizing total costs associated with fresh produce assembly, distribution facility operation. Our results suggest that the effect of scale economies is significant when large capacity facilities enjoy a comparative cost advantage. This article provides a replicable empirical framework to conduct impact and cost assessments for building and locating regional and local food system infrastructure. In addition, a number of future modeling scenarios are suggested.

Original languageEnglish (US)
Pages (from-to)143-157
Number of pages15
JournalInternational Journal of Production Economics
Volume197
DOIs
StatePublished - Mar 1 2018

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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