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Investment decisions for country elevators

✍ Scribed by Wesley W. Wilson; Frank J. Dooley

Publisher
John Wiley and Sons
Year
1989
Tongue
English
Weight
890 KB
Volume
5
Category
Article
ISSN
0742-4477

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✦ Synopsis

Trainload shipments of grain by elevators substantially reduce their transportation costs. However, many elevators must make investments upgrading their plant before they can ship in trainload movements. In this article, a logit model is developed which considers the investment decision for particular elevators in terms of the physical characteristics of the facility and firm attributes. The results suggest there are considerable differences across elevators in the likelihood of being targeted for investment and shipping grain in trainload movements.

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Investment decisions for manufacturing systems are primarily based on three characteristics: cost of purchase and operation, cycle time in connection with maximum capacity and achievable work piece quality. However, such considerations neglect another important criterion: the flexibility that allows