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The Feasibility of Lowering Energy Costs Through Reduced Delivery Frequency

Published online by Cambridge University Press:  10 May 2017

James G. Beierlein  and
Robert J. Campbell
James G. Beierlein
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University
Robert J. Campbell
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Pennsylvania State University
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Abstract

The feasibility of reducing delivery frequency as a means of lowering energy and transportation costs is examined. Four reduced delivery situations are examined using a net present value criteria. While substantial energy savings are possible the cost of equipment necessary to accommodate these reductions outweighs the energy savings at current fuel prices. Substantial fuel price increases are required before such reductions are worthwhile. Good management requires examination of the net effect of energy savings on net revenue.

Type
Research Article
Information
Journal of the Northeastern Agricultural Economics Council , Volume 9 , Issue 1 , April 1980 , pp. 13 - 15
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

The authors wish to acknowledge the helpful comments of the anonymous journal reviewers in this article.

References

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