Processing plant location studies 1 : Theory and a simple application to New Zealand wool selling centres

Abstract

This paper is the first of a series concerned with that aspect of spatial economics known as facility location. Here, the term facility is assumed to have a wide meaning. It includes raw material processing activities such as livestock slaughter works, services such as schools, electricity substations or ambulance centres and storage such as warehouses or bulk depots. Further, the problem may be within either the public or the private sector. The broad classes of processing, service and storage are distinguished because each has characteristic attributes and requires somewhat different procedures. The problem discussed in this paper concerns processing. The paper has three major sections. Firstly the relationship of facility location problems to general economic theory is indicated and some empirical plant location studies noted. Secondly, a workable methodology for solving plant location problems is defined and solved, using the methodology discussed.