eq. (A.355)
This operation is used to simulate bulk flow transport by truck.
● Transport by Truck (Bulk Flow) Procedure
The primary objective of transportation operations is to account for and estimate the shipping cost associated with the transportation of raw materials and finished products of a manufacturing facility. Through the cost-related tab of a transportation operation’s dialog, the user specifies the following cost factors:
● fixed cost (per shipment),
● quantity dependent cost (i.e., cost per shipping quantity), and
● quantity and distance dependent cost (i.e., cost per shipping quantity and shipping distance)
The annual transportation cost (ATC) is estimated using the following equation:
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eq. (A.355) |
where:
● s0 is the number of shipments per year,
● C0 is the fixed cost,
● s1 is the quantity per shipment,
● C1 is the quantity-dependent cost,
● s2 is the shipping distance, and
● C2 is the quantity- and distance-dependent cost.
For units that transport bulk material as well as discrete entities, the above equation is applied twice. Transportation cost is one of the cost item that appears in the Itemized Cost and Economic Evaluation reports. Transportation operations are the only process steps that can contribute to transportation cost; for more details, see Transportation Cost and Costing and Economic Evaluation Reports.
Lack of Equipment
No equipment and equipment-dependent cost is associated with transportation unit operations. Actually, the transportation cost is the only type of cost associated with transportation operations. You may view transportation operations as utility-type of units that offer transportation services to a manufacturing facility. In other words, they are not full-blown unit operations.
No Scheduling Data
Transportation units lack the scheduling tab on their i/o dialog, do not require scheduling data, and do not appear on the scheduling information dialog and the Gantt chart; for information on process scheduling, please refer to Chapter 7 (Scheduling).
The interface of this operation has the following tabs:
● Oper. Cond’s, see Transport Operations: Oper. Conds Tab
● Bulk Cost, see Transport Operations: Bulk Cost Tab
● Batch Sheet, see Operations Dialog: Batch Sheet Tab