An o<|tiatioii was derived for estimating the eonihined spatial cost 

 per pound of live broiler for eliiek and feed delivery and hird assembly. 

 This equation assumes that all plant facilities are located at a central 

 f)oint in the production area and that delivery operations originate at 

 this point and assembly operations terminate at it. This equation is useful 

 in estimating the changes in spatial cost that would result from shifting 

 the location of production units relative to the central facilities. The 

 equation is: Y = 0.634 + 0.015X; where Y is the cost in cents per pound 

 and X is the one way road mileage between the center of the production 

 area and the location of the production unit. 



The results of this report indicate that a firm considering expansion 

 in volume with constant density will face increased spatial cost. For the 

 firm seeking reductions in cost without changes in volume, substantial 

 savings may be realized through increases in broiler production density. 



