Some Implications of Sunk, Congestion and Seasonal Opening Costs within a Regional Grain Handling and transport System

Some Implications of Sunk, Congestion and Seasonal Opening Costs within a Regional Grain Handling and transport System

A study of the Eyre Peninsula in South Australia shows that, if the grain handling system were being constructed from scratch, it would be cost effective to concentrate it at fewer sites. But when account is taken of sunk costs, congestion costs and opening costs, much less rationalisation is justified.

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