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Logistics And Supply Chain Strategies In Grain Exporting

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  • Wilson, William W.
  • Carlson, Donald C.E.
  • Dahl, Bruce L.

Abstract

During the past decade, the grain shipping industry has become highly competitive and technologically advanced. These changes, along with the introduction of innovative shipping mechanisms, have made logistics management an important source of opportunity and risk for grain shippers. In this study, a stochastic simulation model was developed to evaluate the tradeoffs and effects of key variables on logistical performance in managing the grain supply chain. Average demurrage cost for the supply chain was $2.03 million with the greatest cost being for railcars and the least cost being for barges. Of the stochastic variables modeled, changes in export demand had the greatest impact on demurrage costs.

Suggested Citation

  • Wilson, William W. & Carlson, Donald C.E. & Dahl, Bruce L., 2001. "Logistics And Supply Chain Strategies In Grain Exporting," Agribusiness & Applied Economics Report 23614, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaae:23614
    DOI: 10.22004/ag.econ.23614
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    1. 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.
    2. 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.
    3. 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.
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    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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