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Logistics And Supply Chain Strategies In Grain Exporting

Author

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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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    File URL: https://ageconsearch.umn.edu/record/23614/files/aer457.pdf
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    Cited by:

    1. Garima & Doina Olaru & Brett Smith & Kadambot H. M. Siddique, 2024. "Decision-Making in Grain Supply Chains for Sustainable Food System," Sustainability, MDPI, vol. 16(24), pages 1-21, December.
    2. Ndembe, Elvis, 2025. "Precision scheduled railroading, demurrage, and shipper adjustments," Research in Transportation Economics, Elsevier, vol. 109(C).
    3. Garima, & Olaru, Doina & Smith, Brett & Siddique, Kadambot H.M., 2026. "Farm-level adaptations to harvest logistics constraints in export-oriented grain systems," Agricultural Systems, Elsevier, vol. 231(C).
    4. 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.
    5. 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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