The complete system described in this example has three storage features. Round bales, because the rounded top sheds water, can be left in the field for a short time (days) before in-field hauling. This in-field storage provides the advantage of uncoupling the harvest and in-field hauling operations, and thus provides an opportunity for improving the cost efficiency of both operations. The farmgate contract holder has the opportunity to bale when the weather is right and haul later — there is no requirement to delay baling for in-field hauling to catch up.

The second storage feature, satellite storage (SSL), provides the needed transfer point between in-field hauling and highway hauling. The system in this example envisions that the SSLs will be located so that the ton-mile parameter for each SSL will be not more than two miles. (This means that, averaged across all tons stored at that SSL, each ton will be hauled less than two miles from the production field to the SSL.) This constraint gives the farmgate contact holder an upper bound for their in-field hauling cost.

The third storage feature, at-plant storage, provides the needed feedstock buffer at the plant. Those building a bioenergy plant would like to operate with just-in-time (JIT) delivery

of feedstock, as this gives them the lowest cost for receiving facility operation. If JIT is not possible, they want the smallest at-plant storage for cost-effective operation of the plant. There is obviously a trade-off in the logistics system design between the higher cost to purchase JIT delivery, and the cost of at-plant storage operations.