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DIfference in cost for same input?

Topics: General: DIfference in cost for same input?

sbroccoli

Friday, November 23, 2012 - 11:25 am Click here to edit this post
In the hunt for answers to why some of my corporations make a profit while similar corporations make a loss, I've come to notice that the cost of materials varies a lot.

I'm i.a. looking at two oil companies. Both have effectivity upgrade 200. The most profitable also has 200 quality, while the one running a deficit only has 188 quality.

They sell the same amount of goods and have the same revenue. Buth there's a difference in material costs of 20 to 25% in disfavour of the corporation making a loss.

The corporations that is running a deficit has almost all it's materials covered by contracts that fill no more than 100% of its monthly needs. The profitable corporation has about half of its need covered by contracts. Rest is bought on market.

Since prices are the same per unit in contracts and market, that shouldn't do a difference.

And since the corporation that loses money has 100% of its ressources covered by contracts, it never uses immediate purchase orders.

Does quality of production impact on ressourcecost? I thought that was effectivity?

Orbiter

Friday, November 23, 2012 - 08:33 pm Click here to edit this post
the quality of the supplies, effects the material costs. buying supplies at 300Q, means that you are paying 3 times the base cost.

if 170-180 is the optimal supply quality range, anything over that, is money wasted. by contracting your own high quality supplies to yourself... you are buying higher quality goods than the corporation can use. this is normal, and a common problem with common markets.

the common market is a great tool, if you know how to use it. if not, then ignore that feature.

sbroccoli

Friday, November 23, 2012 - 09:38 pm Click here to edit this post
Good point. thx.

I usually stop quality upgrading at around 170-180, but that's too late, I see. My inputs will end up around 280 apparantly.

So far I just bought 'any quality' from the market. If I set 170 as quality, what will it buy? Only OVER 170 or what?

Crafty

Saturday, November 24, 2012 - 06:58 pm Click here to edit this post
It will buy Q170, give or take 5% ish. Any quality is too high for a corp that buys only or mainly on world market, you will hit the max Q produceable by the corp and so waste Q of supplies, that is, spend more on quality supplies than you can use, a waste as Orbiter points out.

sbroccoli

Sunday, November 25, 2012 - 06:14 pm Click here to edit this post
Hmmm...I checked my countries and the Enterprise. They all had 150 as supply quality. So that can't be the reasomn after all why my supply costs are increasing and killing profit.

Jennifer

Sunday, November 25, 2012 - 06:43 pm Click here to edit this post
got some computers @350Q anybody need some major overkill?Got oil at about same,Htec also.Mas Mota


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