A Make vs. Buy Truck Logistics Decision for Grain Companies
Matthew Irsik, Overland Park, KS, defended his thesis, “A Make vs. Buy Truck Logistics Decision for Grain Companies” on October 10, 2017. He works as a Merchandiser for The Scoular Company. Irsik graduated from Kansas State University in December 2017 with a Master of Agribusiness (MAB) degree.
According to the United States Department of Agriculture, the United States produced 20.6 billion bushels of feed grains and wheat in the 2014-2015 marketing year. For the grain produced to reach consumers, it must be transported from the field first to a location where it can be stored and eventually, a location where it can be processed. Instruments to move grain from grain-deprived areas to areas with a grain surplus are also needed. Grain companies use trucks, train cars and barges to move grain from location to location, and for some companies, it can be difficult to decide which method is the most efficient. In his thesis, Irsik evaluated the make vs. buy decision an operation may face with trucks and trailers for grain transportation and determined the decision factors that influence which method is the most optimal for specific situations.
“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” Irsik said.
By using industry data and relevant variables for the cost calculator, Irsik’s research suggested that operating truck logistics in-house is the most cost effective option in the make vs. buy decision for a grain operation in central Kansas. He also included recommendations for further research to be conducted on more complex supply chains outside of the agricultural industry that rely on advanced levels of technology.
Dr. Keith Harris, Assistant Professor and Irsik’s thesis advisor, said, “INSERT QUOTE HERE.”
The full thesis publication can be found online on Kansas State University’s Research Exchange at add link