Pricing costing and

The profit rate for Policy) is a function of prices, costs and demand rates it is determined by modeling inventory as a continuous time Markov chain, similarly to Cachon (1999) and is computed as H = Ylke Tj i k k — r k k — hi. 

Bnphasis Pmhase price, cost, and budg conscious... 

Emphasis Purchase price, cost and budget conscious... 

In most processes, the largest individual cost is raw materials. Raw materials costs and product prices tend to have the largest influence on the economic performance of the process. The value of raw materials and products depends on whether the materials in question are being bought and sold under a contractual arrangement (either within or outside the company) or on the open market (the spot price). Open-market prices can fluctuate considerably with time. Products are normally sold at below open-market price when under a contractual arrangement. 

Time, Cost, and Equipment In comparison with competing methods, potentiome-try provides a rapid, relatively low-cost means for analyzing samples. Commercial instruments for measuring pH or potential are available in a variety of price ranges and include portable models for use in the field. 

Time, Cost, and Equipment Analysis time can vary from several minutes for samples containing only a few constituents to more than an hour for more complex samples. Preliminary sample preparation may substantially increase the analysis time. Instrumentation for gas chromatography ranges in price from inexpensive (a few thousand dollars) to expensive (more than 50,000). The more expensive models are equipped for capillary columns and include a variety of injection options and more sophisticated detectors, such as a mass spectrometer. Packed columns typically cost 50- 200, and the cost of a capillary column is typically 200- 1000. 

Little is known of the market for acetyl chloride. The production and sales are beUeved to be small, but may have potential for very large scale-up. The total U.S. market may amount to only 500 t annually. Acetyl chloride must be shipped in polyethylene-lined dmms having capacities of only 220 L it must be labeled as a corrosive substance. Acetyl chloride generated captively from purchased raw materials probably has a unit value of no more than 0.92—0.95/kg. Shipping costs and other factors set the price at about 3/kg for the commercial trade. 

Capital and operating costs for soda ash production are extremely site specific (29,10). Key factors iaclude iafrastmcture development, freight to consumers, local energy and labor costs, and by-product saleabiUty. 1990 Hst price of bulk natural soda ash was 108/t, F.O.B. Wyoming. 

The 1993 prices and values of fertilizer products consumed in the United States are summarized in Table 16. The prices given are fob production sites or principal terminals thus costs to farmers are greater by virtue of shipping and handling costs and local dealer profits. 

The light weight of these products reduces user s shipping costs and conserves energy in transportation. These products are reusable, a key property from economic, ecological, and energy conservation standpoints. Most products are available in bulk densities of 4.0 to 4.8 kg/m (0.25 to 0.30 lb/fT). Average price is about 1.50 per pound from the manufacturer. 

From the standpoint of commercialization of fuel ceU technologies, there are two challenges initial cost and reHable life. The initial selling price of the 200-kW PAFC power plant from IFC was about 3500/kW. A competitive price is projected to be about 1500/kW orless for the utiHty and commercial on-site markets. For transportation appHcations, cost is also a critical issue. The fuel ceU must compete with conventional mass-produced propulsion systems. Furthermore, it is not clear if the manufacturing cost per kilowatt of small fuel ceU systems can be lower than the cost of much larger units. The life of a fuel ceU stack must be five years minimum for utiHty appHcations, and reHable, maintenance-free operation must be achieved over this time period. The projection for the PAFC stack is a five year life, but reHable operation has yet to be demonstrated for this period. 

The market penetration of synthetic fuels from biomass and wastes in the United States depends on several basic factors, eg, demand, price, performance, competitive feedstock uses, government incentives, whether estabUshed fuel is replaced by a chemically identical fuel or a different product, and cost and availabiUty of other fuels such as oil and natural gas. Detailed analyses have been performed to predict the market penetration of biomass energy well into the twenty-first century. A range of from 3 to about 21 EJ seems to characterize the results of most of these studies. 

The price of lithium metal decreased drastically between 1925 ( 143/kg) and 1965 ( 16.50/kg), but because of increased energy and chemicals costs, and other inflationary pressures, the price has actually increased. Prices for lithium ingots ( /kg) were 72.05 in 1993. 

Investment, Costs, and Prices for Barley and Malt. Estimated malthouse investment (1993) and costs for a new malthouse with annual capacity of 120,000 t are shown in Table 2. This malthouse is equipped with twelve 1,700-bushel steep tanks, eight 10,000-bushel germination compartments, and two double-deck kilns. The kilns are equipped with standard heat recovery units and indirect heat. 

Eig. 8. Barley cost and price of malt and barley, Minneapolis basis A, barley price B, malt price and C, barley cost (41 and Bio-Technical Resources files). 

Elements that the researcher evaluates about competitors include plants, processes, raw material costs and avakabiHty, distribution channels, product development skills, service faciHties, personnel, pricing poHcies, eg, does the competitor lead or foUow , and practices or concessions to secure and hold large customers. AH of these factors are weighed and then the researcher decides on a strategy for the company. 

Distribution Channels. Most commodity chemicals ate primarily sold by the producer to a relatively small number of very large users. However, producers of commodity chemicals also utilize disttibutors to teach small volume users. Distributors buy in bulk and repackage or resell in smaller amounts to a broad spectmm of users. Distributors profit by the difference between their bulk cost and their LCL (less-than-cadoad lots) sales plus a commission from the producer, which may be as high as 15% of the bulk price but is mote often 5 to 10%. 

The cost and selling price for matches increase considerably with higher quaUty cover paper, elaborateness of printed messages on and inside the cover (and sometimes even on the splint), and size of the order. In any case, the customer receives exactiy the same high quahty matches and striking strip. 

Whereas the manufacturing cost is strongly influenced by energy prices, cost of money, and capital investment, ammonia selling prices are usually deterrnined by supply and demand. Therefore, the profitabiUty of ammonia plants is deterrnined by the margin between cost of production and ammonia price. 

The cost and price of sulfuric acid depend in large part on raw material cost and on freight costs. In many areas, the deUvered cost of sulfur is the most important factor affecting sulfuric acid pricing. By-product raw material, ie, SO2, costs at smelters are essentially zero, but the remote locations of many smelters make freight costs significant. Nevertheless, the nondiscretionary nature of smelter acid means that it must be sold if the smelter is to operate. 

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