Abstract
A plant location model with two major aspects is outlined. First, discrete stochastic programming is used to handle variability in supplies and demands. Second, the cost structure of plants is modelled in more detail and with more realism than is usual. Results from applying the model to the Queensland cattle slaughtering industry demonstrate the inappropriateness of using traditional deterministic plant location models to analyse problems with major stochastic elements. Deterministic models yield plant locations, sizes, throughputs, commodity flows and implications which differ markedly from those generated by stochastic models in which plant sizes and locations are optimally matched to variable fat cattle supplies. In addition, the traditional deterministic long‐run model overestimates the normative gains of industry rationalisation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
