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

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.