Purchasing raw materials

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. 

Moisture content is another common and controllable flow factor. Most materials can safely absorb moisture up to a certain point further addition of moisture can cause significant flow problems. Specifications can control the amount of moisture content present in purchased raw materials. Moisture content can be lowered in the plant by including a drying operation in the process line. The costs incurred in drying may be offset by more efficient flow, lower shipping cost, and control of deterioration losses. 

Figure 1 shows a flow chart for part of a recursive modelling procedure, illustrated in this paper, which accepts as input a formula consisting of constituent raw material codes or formula names, and quantities. The procedure retrieves property data for each raw material in order to perform the required calculations. When the procedure encounters a constituent that is a formulated product, it calls itself using that product as input. The output of the procedure consists of the calculated properties of the formula, including those properties of the formula that would be retrieved from data files for non-formulated or purchased raw materials. By returning this latter set of properties, the procedure can treat formulas as raw materials. 

In the production of polyvinyl chloride by the emulsion process, the percentages of catalyst, wetting agent, initiator, and solvent all affect the properties of the resultant polymer. They must be carefully metered into the reaction vessel. The vinyl chloride used must also be very pure. Either the scope must specify that the purchased raw material shall meet certain specifications, or some purification equipment must be installed so that the required quality can be obtained. 

Working Capital (capital employed) is the money that has to be spent in order to start a new project or process, before any income from sales or product is received. This money is tied up, and therefore unavailable for other uses, in the form of current liabilities such as purchased raw materials and borrowings etc., less current assets such as unsold... 

Recently, the DSSC has been used for an educational demonstration of solar energy-to-electricity conversion system because of its simple fabrication [12,168]. Students could purchase DSSC kits including all components such as TCO-coated glass, 2 electrodes, blackberries (i.e., dye), and electrolyte solution [169,170] and easily demonstrate an artificial photosynthetic process. For detailed studies, it is possible to purchase raw materials, including Ru dye photosensitizers, Ti02 paste, and sealing materials, from Solaronix S. A. [171]. 

This has always been an objective of fair trade, but the temptation to enhance profitability too frequently intervenes and it is necessary for the buyer at times to carry out testing to ensure the authenticity of a purchased raw material so that the declaration subsequently given can meet the requirements of labelling. Fruit juices have often, over the years, been subjected to sophistry. As analytical techniques have become more objective and accurate in discovering fraud,... 

After successful fermentation or enzyme reactions, desired products must be separated and purified. This final step is commonly known as downstream processing or bioseparation, which can account for up to 60 percent of the total production costs, excluding the cost of the purchased raw materials (Cliffe, 1988). 

Improving purchasing performance remains one of the most important levers for chemical companies to boost profitability according to the German Chemical Industry Association (VCI), in 2002, chemical companies in Germany spent more than 50 percent of their gross production value at third party suppliers 31 percent went to purchase raw materials, 13 percent was spent on re-sale items, three percent on energy, and another three percent on maintenance services. 

The route to FCP1 involves convergent pathways from the purchased raw materials A, B, Dand E. In Step 1, Ais used to nitrate B and produce C in 70% yield. In Step 2, Amine E is acylated with D to produce F in 80% yield. In Step 3, convergence occurs with the condensation of intermediates C and F to give G in 85% yield. Finally, in Step 4 the precursor G is hydrolysed to give FCP1 in 90% yield. The process is illustrated in Figure D5. 

Therefore, the economic potential at the I/O level could be seen merely as a tool for selecting the chemical route, and at the same time for setting targets when purchasing raw materials. As a rule of thumb, the ratio of selling prices of products to the purchasing prices of raw materials should be a minimum of two when the payback time of the total capital investment is greater than five years. Preferably, this ratio should be about three for a payback time of three years [3]. More accurate calculations may be carried out easily by means of profitability analysis tools. 

Particle size is one of the most common and controllable factors which affect the flowabihty of a given material. In general, it may be assumed that the larger the particle size and the freer the material is from fines, the more easily the material will flow. Specifications can dictate the desired particle size and uniformity of particle size for purchased raw materials. Stage grinding in the plant can reduce waste and improve flowability by producing a ground material with a mini-... 

Printing ink manufacturers purchase raw materials, which are substances or preparations, and mix them into printing inks. 

Oleochemicals are derivatives of fats and oils that are used in the chemical industry to produce a wide variety of products that are then used in numerous applications. The chemical reactions that are used require clean, relatively high-quality raw materials in most, but not all, cases. Some of these markets purchase raw materials on price alone, so they usually get the lowest quality oils. The successful operation can take the cheapest waste oils and convert them into high-value end-products. A good example of this is the conversion of spent restaurant grease into bio-diesel fuel. 

In negotiating to purchase raw materials, BASF uses a safety matrix to evaluate the dangers posed by their physical and chemical properties. Suppliers are also subject to environmental and safety audits by BASF employees to minimize pollution and to assure their use of safety standards are in accordance with Responsible Care. The company s environmental criteria are supplemented with minimum social standards that suppliers are expected to meet, including the prohibition of child labor and the use of forced or bonded workers. 

Accounts payable Purchased raw materials, paid 4000, balance 24 6,000... 

The above quantities are standard for estimation purposes. The quantity of raw material that needs to be held in inventory will vary with each raw material. Capital is required to cover credit (or accounts receivable) extended to customers according to the terms of the rate, generally 30 days. Additional cash is required to pay wages and salaries and to purchase raw materials and pay for other operating expenses. 

Pre-consumer, industrial scrap represents a possible exception to the product quality issue. As one example, the edge trim from multi-layer film cannot be reworked using existing technology. Approximately 25% of the purchased raw materials used for multi-layer films are now burned or buried. This scrap represents a known and controllable feedstock for the selective dissolution process. The component polymers can be recovered in pristine form. Many have values upwards of US 4.00 per kg. 

Since most industrial customers purchase raw materials and form the polyurethane at point of use, analysis of the raw materials is commercially more important and much more common than analysis of the polyurethane product. Raw materials are analyzed to confirm their identity and to assess their suitability for use. The formation of a polyurethane, like the formation of other polymers, is quite sensitive to the purity of the reagents. Since it is... 

Estimates of working capital requirements fall Into four cireas inventories, accounts receivable, cash in hand, and current liabilities. To estimate these, it is necessary to consider the different production stages in which materials can be found, wdiich are (1) raw materials paid for but not received (a portion of current assets) (2) raw materials on hand but not paid for (a portion of current liabilities) (3) materials in process (4) finished products in store whether on-site orpff-site and (5) finished prod-ucts delivered to customers but not yet paid for (accounts receivable). The calculation of the amounts of each of these material inventories depends on such factors as distance from raw material suppliers, types of contracts for raw material purchases, raw material purchase fh nancing methods, quantity discounts and lot sizes available for raw materials, available modes of transportSition, cost of storage facilities, plant size and capacity, seasonality of sales volumes, marketing system, and customer credit policies. 

We first describe a basic model which will be used as a reference point when we review existing results in this area. A manufacturer purchases raw material from a supplier, and uses the raw material to produce a final product, and ships a fixed quantity of the product to a customer periodically to satisfy the customer s constant demand. The size and timing of the shipments are specified by the customer. The manufacturer has a single production line with a constant production rate. There are four cost components in the system (1) distribution cost for delivering raw material from the supplier to the manufacturer, (2) inventory cost for holding raw material at the manufacturer (3) production cost at the manufacturer (there is a fixed setup cost for each production run), and (4) inventory cost for holding finished product at the manufacturer. The problem is to find a joint cyclic raw material delivery and production schedule such that the total cost per unit time is minimum over an infinite planning horizon. 

This book is of value to all areas of a company, from those who purchase raw materials to those working in design, technology and production. It will provide a guide for automotive component buyers and should also be useful to a CEO or board member who is new to the industry. 

Marketing and distribution companies often purchase raw materials from suppliers and then arrange them to be sent to a contract manufacturer for processing. These companies are implementing FT-NIR as a means to control the quality of the product that bears their label by checking not only on the ingredient quality, but also the output from the contract manufacturer. 

Minimum order quantity to purchase raw material i at supplier k... 

Equation 7.21 ensures that plant m can purchase raw material i from supplier k if supplier k is selected ... 

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