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The demand that the factory sees will be limited to that amount that does fall within the catchment area.
Sounds like you need some truck distribution lines to take the delivered products from the receiving train stations and deliver them around the city to where they are needed.
https://imgur.com/a/kK4iT1M
early game 1 cargo stop will do.. but you have to make sure that as a city grows so does the demand.. and add more cargo stops even if the coverage overlaps.
At all times the full city must be covered.
The factories are producing at 100% no matter what what products they receive as they covering 100% of the demand they know about those 2 or 3 that are outside of the catchment areas won't affect the factories stats.
And when you do fully cover early you won't get problems early in that production line, they slow down or speed up depending on the demand from the factory..
Take construction
stone - constructon - city.
city demand 12... stone will only give enough for that demand.. and will grow as the city grows.
When you connect another town that demands..
Every line has to adjust and will slow production on the previous one until both are produced at same speed.. this will slow down production to town A and thus at times less cargo is produced.
Source: https://imgur.com/a/RWTfgw0
Refinery: https://imgur.com/a/UGFD3m0
Towns: https://imgur.com/a/gXgLvln
And they are all covered by stops and trains capable of transporting much more than what they're transporting.
But the fuel ref only needs 100 to supply the cities..
The fuel ref is at 50$ production rate.
So as @Red say if you find somewhere for the sand to go to get at 100%
You may be right. Other than it being a bug, that would be the only logical explanation. I hope that's it, I'll try later and respond here if it works.