S
sbroccoli
23 Nov 2012 11:25
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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?
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?