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Least-Cost Milk Assembly and Manufacturing Plant Locations for the Northeastern Dairy Industry

Published online by Cambridge University Press:  10 May 2017

Steven T. Buccola  and
M. C. Conner
Steven T. Buccola
Affiliation:
Virginia Polytechnic Institute and State University, Blacksburg
M. C. Conner
Affiliation:
Virginia Polytechnic Institute and State University, Blacksburg
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Abstract

There is some concern that geographic patterns of dairy cooperative membership, and customary relationships among milk assemblers and processors, may inhibit milk marketing efficiency in the Northeast. Raw milk assembly patterns and hard product manufacturing plant locations are here developed which minimize total regional costs of these functions. Solutions are highly sensitive to season, day-of-the-week, and capacity assumptions. Evidence strongly suggests that regional coordination of milk assembly and manufacturing would result in cost savings and in some re-alignment of present milk shipment patterns.

Type
Articles
Information
Journal of the Northeastern Agricultural Economics Council , Volume 8 , Issue 1 , April 1979 , pp. 6 - 12
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

This paper summarizes results of the research project “Study of the Milk Assembly System in the Northeast,” financed by a grant from the Office of the Deputy Administrator for Cooperatives (Economics, Statistics, and Cooperatives Service), U.S. Department of Agriculture. Special appreciation is owed to George Tucker of ESCS, who cooperated closely with the authors during the study period.

References

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