Production and Transport Cost per Unit (‘000s of Rupees) Additional Capacity Variables
North East West South
Current
Capacity
150 300 150 300 150 300 150 300 150 300
Chennai 20 19 17 15 300 Chennai 0 0 0 0 0 0 0 0 0 0
Delhi 15 18 17 20 0 Delhi 0 0 0 0 0 1 0 0 0 0
Kolkata 18 15 20 19 0 Kolkata 0 0 1 0 0 0 0 0 0 0
Mumbai 17 20 15 17 300 Mumbai 0 0 0 0 0 0 0 0 1 0
Current Demand
(‘000s units)
100 50 150 150
Growth rate 20% Cost of 150,000 unit plant (‘000,000 Rupees)= 2,000
Cost of 300,000 unit plant (‘000,000 Rupees)= 3,400
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 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
North East West South Capacity Constraint North East West South Capacity Constraint North East West South Capacity Constraint North East West South Capacity Constraint North East West South Capacity Constraint
Chennai 0 60 0 180 300 60 0 0 0 216 300 84 0 0 0 259.2 300 40.8 0 0 0 300 300 00 0 0 300 300 0
Delhi 1.42E-14 0 0 0 0-1.42109E-14 0 0 0 0 0 0 172.8 0 0 0 300 127.2 207.36 0 22.08 0 300 70.56 248.832 0 0 0 300 51.168
Kolkata 0 0 0 0 0 0 60 72 0 0 150 18 0 86.4 0 0 150 63.6 0 103.68 0 0 150 46.32 0 124.416 0 0 150 25.584
Mumbai 120 0 180 0 300 084 0 216 0 300 00 0 259.2 0 300 40.8 0 0 288.96 11.04 300 00 0 373.248 73.248 450 3.504
Demand 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cost = 8,580 Cost = 12,068 Cost = 15,064 Cost = 14,063 Cost = 18,943 Cost = 16,943 16,943 16,943 16,943 16,943 16,943 16,943 16,943 16,943 16,943
Current $= 7,150 Current $= 8,381 Current $= 8,718 Current $= 6,782 Current $= 7,613 Current $= 5,674 4,728 3,940 3,284 2,736 2,280 1,900 1,584 1,320 1,100
Only
Variable
Cost =
16,943
Discount factor = 0.2
Total cost over 15 years = 67,188.73$
Year 4
Year 5
Year 5
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
Year 4