Figure 8. Relationship between Distance in Road Miles 

 and Distribution Cost per Ton 



9.00 



8.00 



7.00 



6.00- 



§5.00 



Q. 



u> 4.00 



_o 



"o 



Q 



3.00 



200 



.00 



O 



Y= 1.250+ 0.0489 X 







50 100 



Road miles one way 



150 



VI. Total Cost for Feed Manufacturing 



and Distribution 



The optimum size of a feed manufacturing plant requires simultane- 

 ous consideration of feed manufacturing and distribution costs. Con- 

 sideration of each independently might result in a higher total average 

 cost than otherwise could be achieved and place the firm at a competi- 

 tive disadvantage. The purpose of this section is to combine the manu- 

 facturing and distribution costs developed in the previous sections to 

 determine the manner in which the two variables, plant size and density, 

 affect optimum size. The combined or total costs are presented for six 



48 



