This study discusses the formulation and application of a mathematical location model. The model was used to determine the optimum locations for orange packing houses in the state of São Paulo, Brazil. The proposed model considers orange packing-houses of seven different capacities, seeking to minimize their implementation, processing, and transportation costs. It is based on the theory of location and makes use of a mixed-integer programming structure. For the purposes of the current analysis, 40 Rural Development Offices (EDR) in the state of São Paulo have been adopted as hubs of supply and consumption and as focal points for the installation of orange packing facilities. The main parameters considered in the model include the costs of orange processing/packing and transportation, the costs to implement different capacity orange packing-houses, and each EDR region’s orange supply and user demand. Four distinct scenarios were analyzed, each conditioned by a different mix of specific assumptions: a maximum of one facility per region, equality between supply and demand, and a lack of pre-existent facilities. Results have shown a low volume of inter-regional orange transport and economies of scale in packing-house operations. The model determined intermediate areas as the best packing-house locations and identified areas for future plant construction.
packing-houses; orange; mixed-integer programming; packing-houses; industrial plant location
