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An Analysis of Alternative Grain Distribution Systems

George W. Ladd and Dennis R. Lifferth
American Journal of Agricultural Economics
Vol. 57, No. 3 (Aug., 1975), pp. 420-430
Stable URL: http://www.jstor.org/stable/1238404
Page Count: 11
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An Analysis of Alternative Grain Distribution Systems
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Abstract

A transshipment plant location model is used to determine the number, size, and location of new subterminals, expansions in storage capacity of existing country elevators, the rail network, and the monthly flows of grain from origins to elevators to destinations to maximize joint net revenue of grain producers within a 6½-county region. A grain transportation system having fewer rail lines would increase joint net revenue. Country elevators incapable of loading multiple-car trains would be used as storage facilities and transship much of their grain to market through subterminals. Total net revenue varied by 1% or 2% over a wide range of rail abandonment plans.

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