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Message: Back of the envelope transpotation economics

I have been doing some quick calculations on the impact of "BULK" and "WEIGHT" impact on the transportation side of finished product cost side impact for the manufacturing side of this deal and the numbers are quite impressive. The leverage that can be gained by a manufacturer can gain by small improvements on this side need to be examined.

As follows

B X W + D=C {bulk times wieght plus distance=cost}

eg: assume distance as constant 10

assume constant cost of gas, lease(ship, train)

a simple calculation of 50 cu meters, 10 tonns, 10 diatance= 510cost

a reduction of 20% of bulk and weight over the same distance....

40 cu meters, 8 tonns, 10 distance= 330cost

36-40% cost savings (depending on methodology)on transport of product to destination.

Please comment:

This may or may not make you smile. If you are a shareholder of Natcore a grin should break out on your face. This often ignored and much meligned portion of the total picture makes clear that any small savings on the wieght/bulk side can be leveraged by manufacturers, via the Natcore process, to evaluate and compensate for production location, labour, etc.

I'm sure that Natcore is aware of these advantages and will leverage them appropriately during their dealings.

Regards;

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