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Annals of Operations Research

, Volume 6, Issue 5, pp 111–128 | Cite as

Spatial price equilibrium, distribution center location and successive over-relaxation

  • F. Guder
  • J. G. Morris
Center Locations And Related Problems

Abstract

A spatial price equilibrium problem is modeled which allows piecewise linear convex flow costs, and a capacity limit on the trade flow between each supply/demand pair of regions. Alternatively, the model determines the locations of intermediate distribution centers in a market economy composed of separate regions, each with approximately linear supply and demand functions. Equilibrium prices, regional supply and demand quantities, and commodity flows are determined endogenously. The model has a quadratic programming formulation which is then reduced by exploiting the structure. The reduced model is particularly well suited to solution using successive over-relaxation.

Keywords and phrases

Spatial price equilibrium quadratic programming interregional trade distribution successive over-relaxation 

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Copyright information

© J.C. Baltzer A.G., Scientific Publishing Company 1986

Authors and Affiliations

  • F. Guder
    • 1
  • J. G. Morris
    • 2
  1. 1.School of BusinessLoyola University of ChicagoChicagoUSA
  2. 2.School of BusinessUniversity of WisconsinMadisonUSA

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