E5-06 - Production and Transport Cost per Unit ('000s of...

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Production and Transport Cost per Unit ('000s of Rupees) Additional Capacity V Year 1 North East West South 150 300 Chennai 20 19 17 15 300 0 0 Delhi 15 18 17 20 0 0 0 Kolkata 18 15 20 19 0 0 0 Mumbai 17 20 15 17 300 0 0 100 50 150 150 Growth rate 20% Cost of 150,000 unit pl Cost of 300,000 unit pl Year 1 demand 120.0 60.0 180.0 180.0 Year 2 demand 144.0 72.0 216.0 216.0 Year 3 demand 172.8 86.4 259.2 259.2 Year 4 demand 207.4 103.7 311.0 311.0 Year 5 demand 248.8 124.4 373.2 373.2 Year 1 North East West South Capacity Constraint North East Chennai 0 60 0 180 300 60 0 0 Delhi 0 0 0 0 0 0 0 0 Kolkata 0 0 0 0 0 0 60 72 Mumbai 120 0 180 0 300 0 84 0 Demand 0.0 0.0 0.0 0.0 0.0 0.0 Cost = 8580 Cost = 12068 Current $= 7150 Current $= 8380.56 Discount factor = 0.2 Total cost over 15 years = 67328.19 (a) We increase capacity by 150K in Kolkata in year 2, add 300K of capacity in Delhi in year 3, add 150K of cap (b) At a 15% growth rate, we add 150K in Kolkata in year 3, and add 300K in Delhi in year 4
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This note was uploaded on 05/12/2010 for the course ESI 6323 taught by Professor Guan during the Summer '09 term at University of Florida.

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E5-06 - Production and Transport Cost per Unit ('000s of...

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