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Estimating Route Assembly Costs

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Listed:
  • Wallace K. Boutwell
  • Richard L. Simmons

Abstract

Theoretical constructs for estimating unit assembly costs for geographically scattered supplies indicate that for point pickup (involving a trip from a central location to each supply point) the relationship between average round trip distance (ARD) to supply points and radius of assembly area (r) is ARD = 1.7r. However, this relationship is not appropriate for route type assembly. Based on a cobweb type road network where each route covers a wedge-shaped route area, average route mileage increases more slowly than ARD up to a radius of approximately 13 miles and then increases slightly more rapidly. Under certain conditions, route mileage and unit assembly costs can remain constant as radius of assembly area and total volume assembled increase.

Suggested Citation

  • Wallace K. Boutwell & Richard L. Simmons, 1964. "Estimating Route Assembly Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(4), pages 841-848.
    • Handle: RePEc:oup:ajagec:v:46:y:1964:i:4:p:841-848.
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