Agroindustrial project analysi

144 AGROINDUSTRIAL PROJECT ANALYSISIs there an adequate labor supply?* Unskilled, skilled, managerial supply adequate?* Special personnel incentives required?Is the infrastructure at the location acceptable?* Energy and water supply, their ecological effects, reliability,and cost?* Fire protection facilities?* Transport?* Social infrastructure?What will be the plant's land cost?* Comparative prices for a square meter?* Adequate to future needs?What will be the developmental effects of the location?* On employment and income distribution?* On regional development?* Fiscal incentives for plant to support development?InventoryManagementInventory management for agroindustries is complicated by thebiological nature and the seasonality of the raw material. Theanalyst should particularly examine the capacity factors, physicalfacilities, and financial aspects of the project.Storage capacityThe purpose of managing raw material inventory is to minimizethe disequilibrium between supply and processing capacity. Seasonalraw materials may require the plant to store, at one time, itsentire annual or semiannual input requirements. Some raw materials,however, must be quickly processed because of their highperishability. When this occurs, the need to store the raw materialis greatly reduced, and the capacity for processing and the productionof finished goods are increased.Processing reduces some products' ability to be stored, and aplant's failure to anticipate this change can cause significant problemsfor inventory management. For example, a wheat flour pro-