This study affirms the economic advantage of decentralized distribution of ethanol fuel, directly from the producing mills, as compared to the federally mandated practice of centralized, multi-product (ethanol plus fossil fuels) distribution. The investiment analysis employed logistics costs evaluated with a transshipment (LP) model. The quantitative results from the study influenced the client organization to begin lobbying efforts to change associated federal regulations, which was approved by CNP in July 1993.
logistics; location analysis
