Assumpti

1
2
3
4
5
6

Assumptions and Instructions

The only cost heads are raw material costs, transportation costs and in-transit inventory carrying cost
The in-transit inventory carrying cost mentioned is WEEKLY as a percentage of the WORTH of goods b
and the applicable percentage is 'p', then the in-transit inventory carrying cost would be (V*n*p/7)
Partial or Full demand can be met in any number of cities. Exhibit 1 gives the TOTAL demand for the
share in ANY city
You can subscribe to ANY ONE service each for Rail and Road only. (Both for inbound and outbound an
Only include the variable costs to be part of your calculations
Please do send ALL excel files used for your calculations

Services preferred
Rail
Road
Outbound
S. No.

Cities

Total Revenue
Total Cost
Total Profit

Demand
met (%)

Demand met
(quintals)

Rail/Road

Inbound + Outbound

Outbound
Transportation
Cost

In-transit Inventory
Carrying cost
Revenue Profit

S. No.

Source

Inbound
Raw Material In-transit Inventory Transportation
Rail/Road Cost
Carrying cost
Cost

Total demand in various towns

Demand (in 10,000
S. No.
Town
quintals)
1 Delhi
35.21
2 Hissar
4.15
3 Ambala
3.54
4 Ludhiana
15.39
5 Jaipur
9.9
6 Lucknow
13.73
7 Muzaffarnagar
6.95
8 Tatanagar
28.11
9 Ranchi
4.7
10 Barajamda
0.21
11 Calcutta
42.82
12 Rajkot
0.21
13 Ahmedabad
3.38
14 Baroda
5.23
15 Raipur
7.11
16 Gwalior
2.26
17 Indore
7.65
18 Jabalpur
0.73
19 Mumbai
37.48
20 Nagpur
9.94
21 Aurangabad
1.4
22 Kolhapur
2.71
23 Waltair
3.23
24 Secunderabad
4.64
25 Kothagudam
9.76
26 Bangalore
10.6
27 Hospet
2.23
28 Bhadravati
10.92
29 Calicut
5.1
30 Chennai
8.47
31 Tiruchirapalli
0.98
32 Bhilai
30
33 Bokaro
35
34 Rourkela
15
35 Durgapur
11
36 Burnpur
6

Indian Rail (base tariff)

Kms
1-100
101-105
106-110
111-115
116-120
121-125
126-130
131-135
136-140
141-145
146-150
151-155
156-160
161-165
166-170
171-175
176-180
181-185
186-190
191-195
196-200
201-205
206-210
211-215
216-220
221-225
226-230
231-235
236-240
241-245
246-250
251-260
261-270
271-280
281-290
291-300
301-310
311-320
321-330
331-340
341-350
351-360
361-370
371-380
381-390
391-400

Rs/quintal
7.24
7.77
7.99
8.21
8.45
8.68
8.91
9.14
9.37
9.59
9.84
10.06
10.28
10.52
10.74
10.97
11.2
11.44
11.66
11.9
12.12
12.73
12.98
13.21
13.45
13.68
13.92
14.15
14.4
14.64
14.86
15.3
15.75
16.19
16.63
17.06
17.79
18.23
18.67
19.12
19.58
20.03
20.46
20.91
21.36
21.8

Service
Superfast
Express
Normal
Fast & Secure

Any one service can be selected for ALL the

401-410
411-420
421-430
431-440
441-450
451-460
461-170
471-480
481-490
491-500
501-510
511-520
521-530
531-540
541-550
551-560
561-570
571-580
581-590
591-600
601-610
611-620
621-630
631-640
641-650
651-660
661-670
671-680
681-690
691-700
701-710
711-720
721-730
731-740
741-750
751-760
761-770
771-780
781-790
791-800
801-825
826-850
851-875
876-900
901-925
926-950
951-975
976-1,000
1,001-1,025
1,026-1,050

23.06
23.52
23.99
24.46
24.92
25.38
25.84
26.3
26.76
27.24
28.87
29.33
29.77
30.22
30.67
31.11
31.56
31.99
32.45
32.9
34.44
34.9
35.36
35.82
36.29
36.73
37.2
37.64
38.11
38.57
39.19
39.65
40.12
40.58
41.04
41.5
41.97
42.44
42.89
43.36
44.69
45.85
47.01
48.18
49.53
50.69
51.86
53.02
54.22
55.21

1,051-1,075
1,076-1,100
1,101-1,125
1,126-1,150
1,151-1,175
1,176-1,200
1,201-1,225
1,226-1,250
1,251-1,275
1,276-1,300
1,301-1,325
1,326-1,350
1,351-1,375
1,376-1,400
1,401-1,425
1,426-1,450
1,451-1,475
1,476-1,500
1,501-1,525
1,526-1,550
1,551-1,575
1,576-1,600
1,601-1,625
1,626-1,650
1,651-1,675
1,676-1,700
1,701-1,725
1,726-1,750
1,751-1,775
1,776-1,800
1,801-1,825
1,826-1,850
1,851-1,875
1,876-1,900
1,901-1,925
1,926-1,950
1,951-1,975
1,976-2,000
2,001-2,025
2,026-2,050
2,051-2,075
2,076-2,100
2,101-2,125
2,126-2,150
2,151-2,175
2,176-2,200
2,201-2,225
2,226-2,250
2,251-2,275
2,276-2,300

56.18
57.16
58.37
59.36
60.35
61.32
63.5
64.5
65.49
66.5
67.75
68.75
69.75
70.75
72.64
73.66
74.68
75.69
76.9
77.73
78.54
79.34
80.5
81.31
82.13
82.95
84.13
84.96
85.76
86.57
87.34
88.16
88.97
89.81
90.42
91.23
92.07
92.88
93.15
93.42
94.14
94.85
95.55
96.27
96.98
97.67
98.39
99.11
99.81
10053

2,301-2,325
2,326-2,350
2,351-2,375
2,376-2,400
2,401-2,450
2,451-2,500
2,501-2,550
2,551-2,600
2,601-2,650
2,651-2,700
2,701-2,750
2,751-2,800
2,801-2,850
2,851-2,900

101.22
101.93
102.63
103.35
104.75
106.18
107.4
108.62
109.85
111.07
112.31
113.53
114.75
115.98

Transportation Cost (As a % Weekly In-transit Cost (As

Distance per day of base transportation cost) a % of RM cost)
300
250%
35%
250
150%
32%
175
100%
25%
230
325%
15%

e service can be selected for ALL the rail transportations

Distance
0-500
500-1000
1000-2000
2000-3000

Cost (per quintal)

35.6
56.2
75.3
87.5

Service
Superfast
Express
Normal
Fast & Secure

Transportation Cost (As a %

Distance per day of base transportation cost)
325
225%
280
175%
190
100%
295
300%

Any one service can be selected for ALL road transportations

Weekly In-transit Cost (As a

% of RM cost)
30%
27.5%
22%
12%

Outbound Distances (Kms) to Market Centres

Town
Pen (Road)
Alibag (Rail)
Delhi
1,420
1,490
Hissar
1,520
1,590
Ambala
1,610
1,680
Ludhiana
1,695
1,765
Jaipur
1,150
1,250
Lucknow
1,400
1,450
Muzaffarnagar
1,550
1,620
Tatanagar
1,700
2,040
Bhilai
1,280
1,450
Rourkela
1,540
1,900
Durgapur
2,000
2,300
Burnpur
1,850
2,250
Bokaro
1,820
2,200
Ranchi
1,650
2,000
Barajamda
1,600
1,800
Calcutta
1,970
2,160
Rajkot
780
850
Ahmedabad
540
630
Baroda
440
510
Raipur
1,140
1,200
Gwalior
1,225
1,170
Indore
880
680
Jabalpur
1,000
1,130
Mumbai
70
85
Nagpur
830
940
Aurangabad
340
350
Kolhapur
540
350
Waltair
1,520
1,320
Secunderabad
810
680
Kothagudam
1,060
980
Bangalore
1,140
970
Hospet
870
670
Bhadravati
1,390
780
Calicut
1,840
1,170
Chennai
1,290
1,310
Tiruchirapalli
1,710
1,300

Alibag
Pen

Distance Matrix (kilometres)

Inbound Road and Rail Distances
Goa
Daitari
Banspani
(Rail)
520
1,780
1,650
(Road)
500
2,200
1,800