The geometric model serves as the basis for establishing several 

 physical relationships for each density level and, ultimately, the average 

 and marginal cost. The average location of all broilers in a l)and is as- 

 sumed to be on a line of equal radius from the center of the production 

 area which divides the band area into halves. The radial distance be- 

 tween the average location in each band and the plant facility is deter- 

 mined and converted into road mileage and travel time for use in deter- 

 mining the required quantity of resources. 



The road network serving the producing area consists of five pri- 

 mary roads extending out from the center and a large number of secon- 

 dary roads that branch off from the primary roads. Table 2 lists the 

 radial and road mileages to the average location in each band for each 

 density situation. 



The budgeting technique is used for deriving least cost solutions for 

 each activity performed by each firm at each density level. The broiler 

 assemljly solutions were derived first and they establish the criteria for 

 the two distribution activities. 



The first step is to establish least-cost solutions for each activity in 

 each band. This is accomplished by inserting the various combinations 

 of resources into a matrix and determining the combination that min- 

 imizes inputs. These input quantities are converted to input costs by 

 application of standardized cost rates. 



The second step is to minimize the spatial activity cost to the firm. 

 The bands in the producing area of each firm are combined into all 

 possible combinations to determine whether one set of resources can 

 service two or more bands instead of a set for each band. Combining 

 eliminates considerable quantities of travel mileage, hours of travel, 

 men, and trucks which reduces costs. 



Several assumptions apply to the analysis of each activity to assure 

 consistency and to have the results additive: 



1) The processing plant of each model firm operates 247 eight- 

 hour days a year which establishes the size and capacity requirements 

 of the broiler production and spatial activities. 



2) All broilers are grown-out in eight weeks, and average 3.5 

 pounds live weight at the time of processing. 



3) The work day for any resource used in the performance of 

 any of the spatial activities is restricted to a maximum of ten hours. 



4) Those phases of each spatial activity performed at the broiler 

 production unit are carried out by personnel of the firm without assist- 

 ance of the grower. 



5) The maximum broiler flock size in any band cannot exceed the 

 number of birds that are assembled in two consecutive work days. This 

 condition establishes maximum flock size at 9,600 in band I, 19,200 in 

 band II, 28,800 in band III, 22,400 in band IV, and 40,000 in bands V 

 and VI. Breeder flock sizes are assumed to be 2,595 in band I, 5,190 in 

 band II, 7,785 in band III, 6,055 in band IV, and 5,406 in Ijands V 

 and VI. 



In addition, each activity has other assumptions peculiar to the 

 nature of the operation. 



