A make vs buy truck logistics decision for grain companies

Grain companies in the United States face many different challenges operating in a mature industry with a rich history in agriculture. The purpose of this thesis project is to examine a solution for a grain companies operating in a geographical region with considerable competition. By focusing on differentiation in level of services offered to customers, grain companies can become more profitable. The results of this study offer a solution, which centers on supply chain logistics. The objective of this project is to examine the make vs buy decision for operating a truck and trailer for grain transportation. Determining the decision factors that influence which method is the most optimal and to provide a method of relating the costs associated with each choice. In order to make an economic decision, a Truck Cost Calculator will be created to best reflect the most realistic cost structure for owning and operating a truck and trailer in house during an average crop year for a facility in Pratt County, KS. Other decision factors that are non-economic that provide a strategic benefit to a business will also be part of the project. Using industry data and relevant variables for the cost calculator, the end result is that operating choosing to operate truck logistics in house is the most cost effective option in the make vs buy decision. The optimal choice will differ individually between businesses when a strategic approach is taken to assess whether or not logistics is a core competency in the supply chain.

Grantor dc:publisher

Kansas State University

Year dc:date.issued

2017

Author dc:creator

• Irsik, Matthew

• Grain
• Make vs. Buy
• Transportation
• Logistics
• Truck Cost Calculator

Statement dc:rights

• © the author. This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en_US

Handle dc:identifier.uri

http://hdl.handle.net/2097/38173

OAI identifier oai:identifier

oai:krex.k-state.edu:2097/38173