Grain Storage in Developing Areas: Location and Size of Facilities

Cesar D. B. Monterosso, Charles L. Wright, Maria Ceclília S. Lacerda and Noboru Ofugi

American Journal of Agricultural Economics, 1985, vol. 67, issue 1, 101-111

Abstract: Storage planners in developing countries often exploit scale economies in grain facilities by building large units far from producers without accounting for the effect on transport costs. Capacitated networks with an approximate master program solve this plant size-location problem, offering computational efficiency, ease of use, and productive interaction with planners unfamiliar with programming techniques. Tests with transport costs in three Brazilian production areas recommend decentralization of storage—more smaller units closer to farmers, a conclusion supported by sensitivity analysis and recent experience of farmers, planners, and cooperative officials.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:67:y:1985:i:1:p:101-111.

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