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The design and location of production facilities are important
aspects of corporate strategy which can have a significant impact
on the socio economy of nations and regions. Here, these decisions
are recognized as being interrelated; that is, the optimal plant
design (input mix and output level) depends on the location of the
plant, and the optimal location of the plant depends on the design
of the plant. Until the late 1950s, however, the questions of where
a firm should locate its plant and what should be its planned input
mix and output level were treated, for the most part, as separate
questions, and were investigated by different groups of research
ers. Although there was some recognition that these questions are
inter I 1928; Hoover 1948; Isard 1956], no detailed analysis
related [e. g. , Pre doh or formal structure was developed
combining these two problems until the work of Moses [1958]. In
recent years scholarly interest in the integrated
production/locaton decision has been increasing rapidly. At the
same time that research on the integrated production/location
problem was expanding, significant related work was occurring in
the fields of operations research, transportation science,
industrial engineering, eco nomics, and geography. Unfortunately,
the regional scientists working on the production/location problem
had little contact with researchers in other fields. They generally
publish in different journals and attend dif ferent professional
meetings. Consequently, little of the recent work in these fields
has made its way into the production/location research and vice
versa.
The design and location of production facilities are important
aspects of corporate strategy which can have a significant impact
on the socio economy of nations and regions. Here, these decisions
are recognized as being interrelated; that is, the optimal plant
design (input mix and output level) depends on the location of the
plant, and the optimal location of the plant depends on the design
of the plant. Until the late 1950s, however, the questions of where
a firm should locate its plant and what should be its planned input
mix and output level were treated, for the most part, as separate
questions, and were investigated by different groups of research
ers. Although there was some recognition that these questions are
inter I 1928; Hoover 1948; Isard 1956], no detailed analysis
related [e. g. , Pre doh or formal structure was developed
combining these two problems until the work of Moses [1958]. In
recent years scholarly interest in the integrated
production/locaton decision has been increasing rapidly. At the
same time that research on the integrated production/location
problem was expanding, significant related work was occurring in
the fields of operations research, transportation science,
industrial engineering, eco nomics, and geography. Unfortunately,
the regional scientists working on the production/location problem
had little contact with researchers in other fields. They generally
publish in different journals and attend dif ferent professional
meetings. Consequently, little of the recent work in these fields
has made its way into the production/location research and vice
versa.
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