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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.

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