“…However, interstate rate differentiation for operations from the south or southeast areas to the north, northeast, or center-west areas adds a trade-off between distance and tax advantages in logistics decisions. The following example of a seed corn supply chain in Brazil illustrates this effect: consider that the transportation unit cost is $0.0988/t.km (SIFRECA 2004), that the product price is $100.00 per 20 kg sacks, and that there are six available routes as presented in Table 3.1, whose origins are production areas in six states (GO, MG, SP, PR, SC, and RS) and whose destination is a demand market in one of the states (MT) (Junqueira and Morabito 2006). Table 3.1 compares total (transportation + circulation tax) costs per sack for each route with the shortest distance total cost option.…”