An economic evaluation of alternative highway routings on the interregional competition in the potato industry
2004
Hussain, M. (University of Agriculture, Faisalabad (Pakistan). Dept. of Agricultural Economics) | Allen, A.J.
An interregional competition model was developed for fresh potatoes to assess the impact of alternative highway rout optimum distribution of potatoes. For the purpose of this analysis, the continental U.S was divided into twelve producing regions and seven consumption regions. Fixed supplies were used for producing regions and demand functions for consumption regions. Transportation costs were estimated between origins and destinations. Reactive programming provided the optimum distribution patterns of potatoes. The base model routed the shipments over U.S. and Interstate highways. The optimal solution obtained this base model provided a measure to compare the impact of alternative highway routings on the distribution patterns of potatoes. The net revenue of the base model was 17,505 million dollars. The overall net revenue of model 2 was 17,502 million doll Model 3 provided the greatest net revenue of 17,563 million dollars. Transit time of model 3 was also greater than model 1 model 2. On the basis of transit time model 1 and 2 are best while on the basis of maximum net revenue model 3 is the best.
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