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Abstract

An examination based on stochastic plant location analysis was made of organizational efficiency in the Queensland cattle slaughtering industry. Short-run models were used to highlight forces influencing commodity flows and plant utilization levels in the industry. These models were also used to explore effects of freight equalization arrangements. Freight equalization was found to involve annual costs of resource misallocation of the order of $1 million. Potential efficiency gains through improved plant locations and sizes were also estimated and found to be at least $4.4 million.

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