Supply chain logistics in grain shipping

Several industries, including the grain industry, have become increasingly concerned with logistics management. Grain industry participants manage several structural difficulties and logistical uncertainties in coordinating grain supply chains. Grain shippers develop logistical strategies to manage their supply chains. Two prominent policies affecting these strategies in grain shipping are demurrage/despatch and guaranteed freight policies.; Objectives of this thesis included evaluating the tradeoffs and effects of key variables on logistical performance, evaluating the effects of strategic and policy variables on the efficiency of the supply chain, and analyzing the effects of various variables and strategies on demurrage costs. A simulation model of a grain supply chain consisting of an inland river terminal with rail loading capabilities and a gulf export terminal was constructed. Results indicated using an anticipatory rail car ordering strategy reduced demurrage costs to grain shippers. Other variables also led to decreased demurrage costs when managed properly.