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Facilities Location: The Case of Grain Subterminals

Author

Listed:
  • Donald A. Hilger
  • Bruce A. McCarl
  • J. William Uhrig

Abstract

An analysis of a grain subterminal location problem within northwestern Indiana is presented. The problem is solved as a mixed integer program with Benders Decomposition, and discussion is presented on the technique. The empirical analysis concentrates upon the optimum number of subterminals within the region under different assumptions. Upon the concentration of grain in the export market, the results show that initially subterminals reduce costs somewhat regardless of location but as the optimum number is approached location becomes more critical.

Suggested Citation

  • Donald A. Hilger & Bruce A. McCarl & J. William Uhrig, 1977. "Facilities Location: The Case of Grain Subterminals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 674-682.
    • Handle: RePEc:oup:ajagec:v:59:y:1977:i:4:p:674-682.
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    File URL: http://hdl.handle.net/10.2307/1239394
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    1. Shu, Kesheng & Schneider, Uwe A. & Scheffran, Jürgen, 2017. "Optimizing the bioenergy industry infrastructure: Transportation networks and bioenergy plant locations," Applied Energy, Elsevier, vol. 192(C), pages 247-261.
    2. Ziari, Houshmand A. & Fuller, Stephen W. & Grant, Warren R. & Sutaria, Vinod, 1995. "Effect Of Proposed Grain Standards On Marketing Costs Of The U.S. Sorghum Sector: An Interregional Transshipment-Plant Location Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(1), pages 1-15, July.
    3. Perry, Gregory M. & McCarl, Bruce A. & Rister, M. Edward, 1988. "Modelling Farm Program-Crop Mix Decisions Under Risk," Regional Research Projects > 1988: S-180 Annual Meeting, March 20-23, 1988, Savannah, Georgia 272783, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    4. Spreen, Thomas H. & Moseley, Anne E. & Pheasant, Jim W., 1986. "A Mixed-Integer Programming Analysis Of The Structure Of A Florida-Based Cattle Feeding Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-13, December.
    5. Marten Graubner & Richard J. Sexton, 2023. "More competitive than you think? Pricing and location of processing firms in agricultural markets," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 784-808, May.
    6. Ming H. Chow & Michael W. Babcock & L. Orlo Sorenson, 1986. "Analysis of structural changes in a grain logistics system: Trainload facilities and intermodal competition in northwest Kansas," Agribusiness, John Wiley & Sons, Ltd., vol. 2(3), pages 279-292.
    7. King, Richard A. & Dahlgran, Roger A. & McDermed, Ann A. & McPeters, David L., 1979. "Evaluation Of Alternative Plant Locations," Department of Economics and Business - Archive 259632, North Carolina State University, Department of Economics.
    8. Ming, Dennis R. & Wilson, William W., 1983. "The Evolving Country Grain Marketing System in North Dakota," Agricultural Economics Reports 23381, North Dakota State University, Department of Agribusiness and Applied Economics.
    9. M T Lucas & D Chhajed, 2004. "Applications of location analysis in agriculture: a survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 561-578, June.
    10. Ladd, George W., 1983. "Value Judgements And Efficiency In Publicly Supported Research," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-7, July.
    11. Shockley, Jordan M. & Saghaian, Sayed H. & Dillon, Carl R., 2007. "Cost Sensitivity Analysis on the Optimal Location of Technology Providers In Kentucky," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34875, Southern Agricultural Economics Association.
    12. Wesley W. Wilson & Frank J. Dooley, 1989. "Investment decisions for country elevators," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 449-464.

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