| The advent of forward guaranteed transportation services in grain merchandising has given shippers new operational tools for strategically managing grain logistics. Today's grain-transportation marketing participants are confronted with general tariff, auction-based rate and car guarantees, and long-term contractual car guarantees. Grain shippers are confronted with more challenging questions of how to integrate these tools into their operations planning.; The primary objective of this thesis was to evaluate the influence of rail shipping alternatives on relevant logistical elements within the country elevator's system. A stochastic simulation model based on inventory management, transportation selection, and scheduling theories was developed. Simulation matrixes were established to evaluate the effects of key elements of uncertainty on a spectrum of shipping strategies. Analyses revealed that mixed strategy comprised of a combination of longer and shorter guarantees can reduce risk in expected payoff levels. Contracting and planning of deliveries may also result in significant reductions in risk. |
