Bill -

I believe if you dive into looking up "milksheds" you will likely find
several pathways to help sort this out.  From decades past, the
regulatory issues of milk basis versus dairies, collection points,
competitive marketplaces, distance to markets, and more have been
studied by agricultural economists and rural development specialists
many, many times.  There are two methods: spatial linear programming
and/or network/friction surface analysis. While not an expert, I believe
the most effective LP's need inputs (coefficients) from travel friction
studies?  Same ideas hold for grain transportation and competing modes:
trucks, rail, barges... versus terminals, engineered
waterways/highways/rails, and market basis.

The LP stuff I will leave to you to dig into. Its history is quite deep
given that the LP stuff was used to determine location of some our first
interstate highways back East, in particular how they would interrelate
to the "milksheds" surrounding New York, Boston and points between.  The
alternative would be the adjusting of several spatial analysis
abstractions that Dr Berry has offered on his MapCalc related web pages:


http://www.innovativegis.com/basis/Senarios/Default.html

I believe friction surface as a proxy for speed and its travel
complexity, start/go, uphill/downhill, combined with markets (ATMs in
the example below) might be a conceptual start? Change the friction
surface by changed assumptions and new flows occur. In this particular
example, bank customers versus bank ATM locations, the friction surface
is rather a simple one.  And as they say time is money. Flows can be
converted into cost/distance analysis.  Net profits at end points can be
guessitimated by margin analysis and simple assumptions on price
elasticy?

Travel-time and Customer Access
http://www.innovativegis.com/basis/Senarios/TTime_scenario.htm

Surface flows that conduit consumers to markets also have cost or
friction surfaces. Pooling are essentially flows that can not achieve
velocity.  

Mapping Surface Flows and Pooling
http://www.innovativegis.com/basis/Senarios/Pooling_scenario.htm

Dr Joe also has several books and in particular tutorials in the MapCalc
Learner that will also illustrate other tricks to establish friction
surfaces and impediments to natural flows... as the crow flies is not
how you really get there... but if you build a bridge over a river,
natural pathways change.

Hope this might offer some insights. 

MidNight Mapper
Aka neil

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Bill
Thoen
Sent: Friday, September 22, 2006 3:53 AM
To: MapInfo List
Subject: [MI-L] Modelling Market Netowrks and Transportation Costs

I'm interested in any good information on modelling markets and 
transportation costs. I think this a problem that can be solved using 
network functions, but I'd like to know more about the factors involved 
in such a problem. For example, suppose you had 100 cities that either 
bought or sold widgets and there were various transportation routes 
between the cities with some variable cost associated with moving the 
widgets. How would you go about designing a program that could tell you 
the current price of widgets in Gotham? If you added a new 
transprotation route betwen cities or increased the carrying capacity of

one or more routes, how would that affect the price in Gotham then?

Assume that there is a variable supply at the producing centers, and in 
some cases the can produce more than they can sell, while in other cases

they can't produce enough to keep up with demand. I was thinking that it

might be like water flowing into and out of a network of pipes. There 
are inflow and outflow points, there is pipeline capacity (that may or 
may not be maxed out), and I guess if you add reservoirs at various 
points in the network you would affect the response of the system to 
changes in demand.

Anyway I'm just trying to get a grip on this sort of problem, so if 
anyone knows of examples or what parameters are involved, or even how to

go about modeling such a process, I'd be interested in learning more.

- Bill Thoen



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