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Logistics and supply chain strategies in grain exporting

Author

Listed:
  • William W. Wilson

    (Department of Agribusiness and Applied Economics, North Dakota State University, P.O. Box 5635, Fargo, ND 58105-5636)

  • Donald C.E. Carlson

    (Jennie-O Turkey Store, Atwater, MN)

  • Bruce L. Dahl

    (Department of Agribusiness and Applied Economics, North Dakota State University, P.O. Box 5635, Fargo, ND 58105-5636)

Abstract

The grain shipping industry is highly competitive and has become technically advanced during the past decade. These changes, along with the introduction of innovative shipping mechanisms, have made logistics management an important source of opportunity and risk for grain shippers. A stochastic simulation model was developed to evaluate tradeoffs and effects of key variables on logistical costs in the grain supply chain for an individual firm. Average demurrage for the supply chain was $2.14 million ($0.70|mt or 1.8 cent|bu) with the highest demurrage costs for vessels and lowest for railcars. Of the random variables modeled, unexpected changes in export demand had the greatest impact on costs. [EconLit citation: Q130.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 449-464, 2004.

Suggested Citation

  • William W. Wilson & Donald C.E. Carlson & Bruce L. Dahl, 2004. "Logistics and supply chain strategies in grain exporting," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 449-464.
    • Handle: RePEc:wly:agribz:v:20:y:2004:i:4:p:449-464
    DOI: 10.1002/agr.20026
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    References listed on IDEAS

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    1. Caves, Richard E. & Pugel, Thomas A., 1982. "New Evidence on Competition in the Grain Trade," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 18(3), pages 1-14.
    2. William W. Wilson & Bruce L. Dahl, 2000. "Logistical Strategies and Risks in Canadian Grain Marketing," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(2), pages 141-160, July.
    3. Hau L. Lee & Corey Billington, 1995. "The Evolution of Supply-Chain-Management Models and Practice at Hewlett-Packard," Interfaces, INFORMS, vol. 25(5), pages 42-63, October.
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    Cited by:

    1. Gustafson, Cole R., 2003. "Costs of Producing for an Identity-Preserved (IP) Grain Market: A Case Study," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2003, pages 1-10.
    2. Gleim, Savannah & Nolan, James, 2015. "Canada’s Grain Handling and Transportation System: A GIS-based Evaluation of Potential Policy Changes," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 54(3).

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