A Regional Production and Transportation Model

A linear programming model is set forth for maximizing a vector of final demand deliveries under both regional production constraints and transportation network constraints. The model is essentially designed to study short-run effects, and hence no provision is made for the expansion of either industrial or transportation capacities. Within available capacities, however, the location of production is chosen so as to maximize final demand deliveries. A rough dynamic version of the model is presented as well as an algorithm for reaching an approximation of the optimum solution.