Inventories in spatial models

In this paper we analyse how the shortage of goods at different supply centres, distributed in the space, influences the market areas of the final consumers. The influence of inventory and pricing on the market area of each supplier is considered. The model has been derived from the multistop travel approach described by Arentze et al. (1992) and from the Beckmann and Thisse (1986) approach to the location of production activities.