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a term paper on biomass as an energy source
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In energy systems where the energy-collection process in an energy-material is needed as a step physically separated from the Processing Unit, the transportation of the energy-material that contains the energy is required. In the case of biomass-based energy systems, this step encompasses all the infra-structure associated with the logistics of supplying biomass to the Processing Unit: machines, roads, pipes, etc.
Although the energy that flows through this stage is tied to the amount of raw material demanded by the processing plant, its cost structure may vary freely, dependent upon the type of transportation technology adopted (i.e.: pipelines, trucks, railroads), distances, daily demand of the processing unit, operation time, and physical characteristics of the raw material (as density).
(4.15)
Where:
[%] Losses, “as logistic capacities decrease along the chains, due to dry matter losses, drying, or conversion” (C Hamelinck, Suurs, & A Faaij, 2005, p. 116);
In terms of assets, two components are critical in measuring the level of asset-utilization involved in transportation. Regarding costs, two elements must be considered: distance variable costs (DVC), the component that is directly dependent on the distance traveled, and distance fixed costs (DFC), which is independent of the distance traveled. DVC depends on the transportation mode and the specific location. DFC depends on the type of biomass being transported and equipment. Hence, DFC will vary based on the specific form of biomass largely than DVC. “The impact of Distance Fixed Cost on overall transportation cost diminishes with increasing distance” (Searcy et al., 2007).
3.4.4 Stage 04 – Storage
In storage, energy density relates the mass of an energy sto...
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...and the transportation distance. All potential paths connecting each biomass production site with the power plant are identified using the road network. The transportation distance is then identified as the length of the shortest route from the centre of each region to the power plant site.
Furthermore, the effect of main logistic variables, such as specific vehicle transport costs, vehicles capacity, specific purchased biomass costs, and distribution density, has been examined in function of plants size.
In order to assess bioenergy plants profitability and the impact of logistic variables, at first a comprehensive cost-estimating procedure has to be established with reference to the considered energy production processes, followed by an overall economic evaluation model able to capture the effects of varying parameters values on plant cost-varying parameters.
Tran, N., P. Illukpitiya, J.F. Yanagida, and R. Ogoshi. 2011. "Optimizing biofuel production: An economic analysis for selected biofuel feedstock production in Hawaii." Biomass and Bioenergy.
Cost flows are an important part of this system and can be defined as the costs of raw
The raw materials are then sent to the production shop to be processed in large containers and under certain conditions for product manufacturing. At this stage of the production cycle, high amounts of energy and water are consumed and wastes are generated. Most of the companies in the industry are aiming to reduce the consumption of energy and water, and production of waste with their sustainability programmes and
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
...med throughout the production ladder (one for each stage). Nonetheless, such effect has its advantages as this analysis might make bottlenecks to efficiency more apparent and easily identifiable. It might even be desirable, as some authors suggest that, the exploration and cross-comparison of asset utilization within an industrial sector, only make sense when a “holistic view of the producing chain is kept” (Stadtler, 2008, p. 38). Perhaps such a view will not only increase our overall understanding of the energy system, but also facilitate its mathematical modeling. Although directly calculating the overall energy turn presented by the energy system is our ultimate goal, its direct aggregated estimation would naturally reduce our ability to cross-compare and understand REPs and increase the likelihood of incurring mathematical errors during the process of modeling.
6. Life cycle cost reduction. Total life-cycle costs are minimized for both the producer and
For example: with the increase of the number of products produced, the cost of operating a machine also increase. Second we have batch level costs which is associated with batches; producing a multiple units of the same product that are processed together is called a batch. The third type is product level costs which arise from any activity in order to support the production of products. The fourth and the last type is facility level costs, this costs cannot be determined with a particular unit, product or batch; this costs are fixed with respect to batches, products and number of units produced. A single measure of volume is used for allocating costs to each service or product in traditional method for example: direct material cost, machine hours, direct labor cost and direct labor hours. A cost driver is an activity that generate costs, it can be generated by two types of costs the first is a particular machine 's running costs where the costs is driven by production volume as machine hours; the second is quality inspection costs where the cost is driven by the number of times the relevant activity occurs as the number of
Not only does this affect the cost of transporting materials, but has a knock on effect affecting supplier negotiations. Due to very little opportunity to reduce costs of fuel, most cost saving is pursued in getting the best price from suppliers. In pursuing this objective, negotiations can become heated and unfriendly. This puts strain on the relationship with the supplier. This strain can result in negotiations ceasing forcing WHBO to go to an alternate supplier who has a worse price.
The necessity for machinery such as tractors and possibly diet feeders as well as grain stores or silos add to fixed costs on the farm
It is the process of breaking down the big massive cost into different parts based on (1) nature, (2) traceability, (3) behavior and (4) production and non-production cost.
According to DTI (Descon Technical Institute) decentralized energy can be defined by the technology used as electricity generated by hydro, wind, PV systems, biomass and combined heat and power generation which are renewable energy resources.[3] Proper efficient usage of renewable energy resources and fossil is to be achieved by decentralized system with combined electrical power and heat. [4]
Economic Impacts. The economic impacts of logistics are described in highlights of four major areas: economic development and specialization, variety of goods, effects on prices, and land values. Logistics contributes to economic development by allowing firms to capitalize on comparative cost advantages in the production of goods and services by efficiently transporting goods to the market. The volume and variety of goods produced by firms is made available to consumers at places far from production points, frequently long after the goods have been produced. The availability of goods depends on the effective logistics performance of all firms in movement and storage functions. The creation of time and place utility by logistics activities may also contribute to lower prices. Improvement of logistics systems by firms, both technically and managerially, leads to many benefits on prices and the availability of goods. Transportation can affect land values when technical improvements occur. Improved transportation facilities increase the accessibility of the land, making it more useful and
Distance between the traded regions and means of transportation mainly influence the transaction cost. The different geographical location of the market that is very important in agriculture, as agricultural products are awkwardly large and easily perishables which is likely ...
This paper aims at providing more information concerning the different modes of transport, their characteristics and also the comparison of these modes with one another in an effort to establish the best mode of transport for specific commodities. The paper also takes into consideration the various factors affecting the transport sector; such as cost of transportation, flexibility, time factor and reliability. Transport refers to the process that enables physical movement of goods and people from on area to another. Transport is very important in the sense that it ensures availability of raw materials to manufactures, producers and also to construction sites (Clifford Winston,?2010). It makes sure that goods are available
Transport can be classified as land, water, air, and pipeline. Among them road transport networkis taking greater share of world transport and plays a vital role for the economic development and social integration of the society in country by increasing mobility of peoples, goods and services as well as by decreasing travel time. Road transport is an important sector for economic activity, especially in developing countries, where it plays an essential role in marketing agricultural products and providing access to health, education, and agricultural inputs and extension services.