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Abstract

Excerpts from the report Summary: This study shows that a location-logistics system for feed firm management is feasible. The potential improvements in profits as a result of using the location-logistics system in the analysis more than justified the time required for developing and using the system. The analysis revealed that with properly located plant facilities, the most desirable procurement, processing, and distribution combination could produce 8 to 10 percent higher returns than the poorest combination. Such a system can be used by feed manufacturers not only in making long-range location decisions but also as an operational control system. It is an application of the systems approach designed to aid management in identifying the relevant decision variables, evaluating the decision alternatives, and determining an optimum course of action. The system is used to analyze the major variables affecting the procurement, processing, and distribution functions of the firm.

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