The total distance formula consists of three parts:
The total distance formula consists of three parts:
* ingredients: the transportation of the ingredients to the production site;
* ingredients: the transportation of the ingredients to the production site;
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* wholesale: the transportation of the finished product to the seller;
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* wholesale: the transportation of the finished product to the reseller;
* distribution: the transportation from the reseller to the consumer;
* distribution: the transportation from the reseller to the consumer;
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==== Wholesale ====
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The part of the distance concerns the transport from the production location to the reseller warehouse. This might involve the transport between two countries.
The distribution part of the formula concern only transport within a single country. It concerns the transportation from a wholesale warehouse of the reseller to the consumer. For this we should know the location of the warehouse and consumer to the NUTS-level that we want to use. If this is unknown, we can use a larger area NUTS-level or the entire country. We need to calculate the distance between the NUTS-area centroid of the wholesale location and the NUTS-area centroid of the consumer location. If we must assume the entire country, then the country sizes can be used as approximation.
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These distances are tabulated in various spreadsheets for the NUTS-1 levels: