An analysis of a grain subterminal location problem within northwestern Indiana is presented. The problem is solved as a mixed integer program with Benders Decomposition, and discussion is presented on the technique. The empirical analysis concentrates upon the optimum number of subterminals within the region under different assumptions. Upon the concentration of grain in the export market, the results show that initially subterminals reduce costs somewhat regardless of location but as the optimum number is approached location becomes more critical.
