Journal article
The Optimum Size of a Producer Service Firm Facing Uncertain Demand
Abstract
In this paper we present a theory of optimum size and number of clients for a producer service firm performing maintenance and repair services for clients in the manufacturing sector. The theory holds that scale economies vary directly with the level of contact requirements for service delivery. This is illustrated by a model of a monopoly repair specialist in which frequency of breakdown (and therefore client demand for service) is stochastic. …
Authors
Phillips D; MacPherson AD; Lentnek B
Journal
Environment and Planning A Economy and Space, Vol. 30, No. 1, pp. 129–141
Publisher
SAGE Publications
Publication Date
January 1998
DOI
10.1068/a300129
ISSN
0308-518X