Anthony Thompson <thompson@...>
Jim Murrie1 wrote:
Many moons ago when I was getting my MBA degree the rule of thumb was that you wanted to "long haul" the raw materials (low value goods) and "short haul" the finished product (i.e. high value goods). I don't remember all the reasoning anymore, but I'm sure at least one reason had to do with the way freight tariffs were set back then.This rule of thumb only works, of course, if there is a big difference in the two values. For cement, and for other building materials like brick and block, the difference isn't big (and the raw materials are found all over). Obviously for, say, washing machines, it's a different story.
Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history