SOME IMPLICATIONS OF SUNK, CONGESTION AND SEASONAL OPENING COSTS WITHIN A REGIONAL GRAIN HANDLING AND TRANSPORT SYSTEM.

IN THIS PAPER, SOME EFFECTS OF THREE FACTORS OFTEN NEGLECTED IN PLANT LOCATION AND TRANS-SHIPMENT STUDIES ARE ANALYSED. THESE FACTORS ARE THE SUNK NATURE OF SOME CAPITAL COSTS OF EXISTING FACILITIES, CONGESTION COSTS, AND THE COSTS OF OPENING SEASONAL FACILITIES. IT IS DEMONSTRATED THAT EACH OF THESE FACTORS, AT LEAST IN THE CASE OF GRAIN HANDLING AND TRANSPORT SYSTEMS, CAN HAVE SIGNIFICANT EFFECTS UPON OPTIMAL INVESTMENT AND OPERATING STRATEGIES.(Author/publisher).