Fixed-charge cost

An alternative way of modeling Ci( i) is via a set of piece- wise linear functions that correspond to fixed charge cost models of the form ... 

The investment cost of each distillation column is expressed as a nonlinear fixed charge cost and the following expressions result from performing regression analysis on the simulation data taken at a number of operating pressures Paules (1990). 

Sulfur The riug-roUer mill can be used for the fine grinding of sulfur. Inert gases are supplied instead of hot air (see Properties of Sohds Safety for use of inert gas). Performance of a Raymond No. 5057 ring-roller mill is given in Table 20-34. The total cost might be 3 to 4 times the power cost and include labor, inert gas, maintenance, and fixed charges. 

Historically, the electric power industry was characterized as being a natural monopoly. Natural monopolies typically occur in industries with veiyi large fixed capital costs and relatively low operating costs. The cost characteristics of these industries tend to make them the most efficient producers in a given regional market. However, since these natural monopolies face no competition, they have the ability, if left unchecked, to charge prices that could be considerably above costs. Industries with large infrastructure requirements, such as telecommunications, water... 

Figure 1-38 is reasonably typical of fixed-fee costs as charged by contract engineering organizations. The top curve representing the total engineering and related costs... 

Thus there are two types of expenses those that are independent of the amount of usage and those that depend on how much the car is driven. The former are known as fixed charges and include depreciation, insurance, interest costs, garage expenses, driver s license, and city and state taxes. 

For the chemical plant the fixed charges, those that do not vary with the throughput, are depreciation, taxes, and insurance. The labor, utilities, supplies, and sales also cost more per pound of product if the plant is not running at full capacity, but their total cost is less than if the plant were running at full capacity. 

Boiler steam may be purchased at 0.2/1000 kg and the vapour produced may be assumed to be 0.85N kg/kg of boiler steam. Assuming that interest on capital, depreciation, and other fixed charges amount to 45 per cent of the capital involved per annum, and that the cost of labour is constant and independent of the number of effects employed, determine the number of effects which, based on the data given, will give the maximum economy. 

Annual fixed charges, 225V°-5, with Vr in liters Labor and operating costs, 20/day for 300 days/yr Find the conditions that will give the maximum profit. 

Assume that the plant in which this equipment is installed will operate 10 years, that a tax rate of 34%/year is applicable, and that a charge of 10% of the capital cost per year for depreciation will be employed over the entire 10-year period, that fixed charges including maintenance incurred by installation of this equipment will amount to 10%/year of the investment, and that a minimum acceptable return rate on invested capital after taxes and depreciation is 15%. Determine which of the two alternative installations should be selected, if any. 

Annual Fixed Charges Annual Variable Costs Including Maintenance... 

To operate the chemical plant, some direct expenses must be sustained. Manufacturing costs are the expenses connected with the manufacturing operation of the process plant. These costs can be divided into direct production costs, fixed charges, plant overhead costs and general expenses. Direct manufacturing costs are expenses strongly associated with the manufacturing operations. 

Total direct costs Fixed charges EUR/year 263678... 

D is in inches, Q in cuft/sec, p in ib/cuft, and p in cP. The factors involved in the derivation are power cost = 0.055/kWh, friction loss due to fittings is 35% that of the straight length, annual fixed charges are 20% of installation cost, pump efficiency is 50%, and cost of 1-in. IPS schedule 40 pipe is 0.45/ft. Formulas that take additional factors into account also are developed in that book. 

Annual Fixed Charges Interest, amortization of the system capital costs, interim replacement, insurance and taxes.. Overall Performance Accounting for condenser and turbine characteristics. 

Note that the investment cost of each distillation column can be expressed as a nonlinear fixed charge relaxation in which the nonlinearities are introduced due to the cost dependence on both the temperature and the column and the feed flow rate. 

In a model developed to analyze the trade-off between scale advantages from product-focused factories and reduced transport costs from market-focused factories Cohen and Moon (1991) and Moon (1989) consider a fixed charge incurred for each product-plant allocation and a concave production cost function. The cost function is transformed into a piecewise linear function. In a model developed for the paper industry, Philpott and Everett (2001, pp. 229-230) use pre-determined product mix "clusters" that are selected using binary variables and for which the effects on unit production costs and technical capacity are specified exogenously to model scope effects. 

The total costs in electrodialysis are the sum of fixed charges associated with the amortization of the plant capital costs and the plant operating costs. Both the capital costs as well as the plant operating costs per unit product are proportional to the number of ions removed from a feed solution, that is, the concentration difference... 

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