Combining slash bundling with in-woods grinding operations
Combining slash bundling with in-woods grinding operations
Combining slash bundling with in-woods grinding operations
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System cost<br />
($/BDT)<br />
78.00<br />
76.00<br />
74.00<br />
72.00<br />
70.00<br />
68.00<br />
66.00<br />
64.00<br />
62.00<br />
60.00<br />
1 1.5 2 2.5 3 3.5 4<br />
Dirt road miles<br />
1⁰ gravel road<br />
miles<br />
1<br />
2<br />
3<br />
Figure 5: Sensitivity analysis of system production cost on various transportation distances.<br />
One factor that had an effect on the overall system cost was diesel fuel prices which were at a<br />
national peak dur<strong>in</strong>g the study <strong>in</strong> the summer of 2008. Diesel fuel price assumed for the<br />
operation was $4.60/gal. Six months later fuel prices <strong>in</strong> the region dropped to $2.50/gal. Hold<strong>in</strong>g<br />
all other variables of system cost constant, every dollar reduction of fuel price represents around<br />
a $3.52/BDT reduction <strong>in</strong> overall system cost (Fig. 6).<br />
Production Cost<br />
($/BDT)<br />
64<br />
62<br />
60<br />
58<br />
56<br />
54<br />
52<br />
50<br />
2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00<br />
Diesel Fuel Price<br />
($/gal)<br />
Figure 6: Sensitivity analysis on system production cost <strong>with</strong> various fuel market<br />
prices.