Relocation Model for Logistic Firms with Consideration of Spatial Effects

Understanding the factors that play a key role in the decisions that businesses make on where to locate is very important in order to determine the most effective mechanisms to attract business, and thereby maintain a healthy economy. Numerous studies have examined the relative significance of various factors in the process of selecting a business location by developing theoretical models to explain the different facets of the process. However, less attention has been given to the use of a mixed logit model in particular, and discrete choice models in general. In fact, the choice of location is generally influenced by factors such as the characteristics of the firm, the attributes of the zones being considered, and transportation accessibility. In addition, the interplay among logistic firms can be view as interactions in a space. A firm, while making a relocation decision, does not act in isolation; in contrast, firms are influenced by others who located nearby. Therefore, how the spatial effect on the firm relocation choice behavior should be considered carefully in the research process. This paper presents an overview of a relocation choice model for logistic firms; the presented conceptual model distinguishes a separate relocation decision and a conditional decision for an alternative new location. This means that the joint decision of firm I to move and to relocate to location J is the product of the probability firm I will move and the conditional probability that firm I chooses location J from a subset of alternatives. This model takes into account spatial effects in the conditional decision for an alternative new location. A modeling framework is developed to analyze decisions regarding relocation choice for logistic firms based on mixed logit models. In this framework, spatial effects such as the correlation among firms in deterministic terms and the spatial correlation among zones in the error term are captured by mixed logit models. In addition, the dynamics of the consumption of commodities between consumers and suppliers is considered.

• Record URL:
  • https://aetransport.org/past-etc-papers/conference-papers-pre-2009/conference-papers-2010
• Corporate Authors:

  Association for European Transport (AET)

  1 Vernon Mews, Vernon Street, West Kensington
  London W14 0RL,    
• Authors:
  • Cao, Nguyen
• Conference:
  • European Transport Conference, 2010
  • Location: Glasgow Scotland, United Kingdom
  • Date: 2010-10-11 to 2010-10-13
• Publication Date: 2010

Language

• English

Media Info

• Media Type: Web
• Pagination: v.p.
• Monograph Title: European Transport Conference, 2010 Proceedings

Subject/Index Terms

• TRT Terms: Accessibility; Decision making; Economic development; Industrial location; Logistics; Relocation (Facilities); Spatial analysis
• Uncontrolled Terms: Mixed logit models
• Subject Areas: Planning and Forecasting; Transportation (General); I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01350770
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 31 2011 7:45AM