The trade‐off between production and transportation costs in determining optimal plant size
作者:
Aneel Karnani,
期刊:
Strategic Management Journal
(WILEY Available online 1983)
卷期:
Volume 4,
issue 1
页码: 45-54
ISSN:0143-2095
年代: 1983
DOI:10.1002/smj.4250040105
出版商: John Wiley&Sons, Ltd.
数据来源: WILEY
摘要:
AbstractAn important element of manufacturing strategy is to decide on the shipping radius and the size of a geographically focused plant. This decision involves a trade‐off between exploiting economies of scale in production by building a large plant and decreasing transportation costs by building a small plant. The paper presents a model for analysing this trade‐off. It is shown that scale economies in transportation facilitate the exploitation of production economies of scale. For an optimal sized plant, the ratio of transportation to production costs does not depend on the absolute cost levels in production and transportation, but only the economies of scale present in production and in transportat
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