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Unduli

Economy of Scale

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Hello there,

 

 As I tried to briefly outline here @ http://www.gamedev.net/topic/651608-cheapest-path-finding/ , I am working on a shipping simulation. What I am stuck at is figuring out total cost of shipment from POV of vehicle.

 

 I mean that I intend vehicles more used to have lower average cost like if truck goes 1 time it costs 10, if 2 times its 19 etc.

 

 Problem is because I can't know how many times this vehicle will be used during day, I can't find average cost until the end of day. In that case how should I charge people?

 

 If I charge first 10 and second 9, people will wait. Otherwise I can't estimate.

 

So kinda stuck, any help is appreciated.

 

Thanks in advance and sorry for terrible writing.

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Is it realy a problem if people wait a while ?

The one going first only needs to make a profit(i assume) and even though his/her profit will be lower, they'll be ready to make profit again before anyone else.

And on the second day you can just use the stats from the previous day.

Realy all you have to do is make sure your initial price isn't overexpensive.

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Use data from the previous day. It's not only easier to implement but also more realistic (economic decision rarely are done optimally and with full access to data, by approximation you introduce an element of uncertanity & risk, which in general is good if in reasonable quantities).

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If you have 2 deliveries on the exact same route, the first one costs $10 and the second costs $9, then where does that $1 difference come from? Why should the client benefit from the extra $1 it and not you?

 

I'm thinking that, "how much to charge people" should remain constant but your operating costs can fluctuate depending on how you plan a vehicle's route or activities. Reducing operating costs with a well planned route or carefully planning activities (maintenance, refueling, or some other type of overhead cost ) results in more profit. The thing is then you'd have to be able to identify and communicate operating costs so a player could look at them and figure out how they might want to reduce them.

Edited by kseh

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If you have 2 deliveries on the exact same route, the first one costs $10 and the second costs $9, then where does that $1 difference come from? Why should the client benefit from the extra $1 it and not you?

 

I'm thinking that, "how much to charge people" should remain constant but your operating costs can fluctuate depending on how you plan a vehicle's route or activities. Reducing operating costs with a well planned route or carefully planning activities (maintenance, refueling, or some other type of overhead cost ) results in more profit. The thing is then you'd have to be able to identify and communicate operating costs so a player could look at them and figure out how they might want to reduce them.

 

Actually, that's a better point of view. There is no reason for client to benefit of that indeed, directly I mean.

 

But indirectly, routes are very varietal, so can't know if someone will send a huge shipment to Madagascar tomorrow too. Maintenance (older vehicle has more), fuel etc is problem of "me" as well.

 

I just realized how real world posting handle this, ofc it is responsibility of local posts in country but during transit, who's in charge?

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Is it realy a problem if people wait a while ?

The one going first only needs to make a profit(i assume) and even though his/her profit will be lower, they'll be ready to make profit again before anyone else.

And on the second day you can just use the stats from the previous day.

Realy all you have to do is make sure your initial price isn't overexpensive.

 

So is it wiser to add a flat profit margin as route changes all the time? or have "zones"? but it changes very often as well, so not sure.

 

 

Use data from the previous day. It's not only easier to implement but also more realistic (economic decision rarely are done optimally and with full access to data, by approximation you introduce an element of uncertanity & risk, which in general is good if in reasonable quantities).

 

I think people will figure out of a fail-safe margin anyway, but optimal route changes in time (embargo, natural disaster etc)

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My understanding of how this works in the real world is you have flat regular cost and a transit cost.

 

So if you own a truck which can be used to ship 10 tons of goods.  That truck might cost you a flat rate $100 a day regardless of whether it is used or not.  You can then add a transit cost which is how much it costs to move the goods.  For instance the transport cost might be $.01 per km and have a daily range of 1000 miles.

 

Sending 2 tons of wood 120 km every day would cost 100+12= $120 =  $60 per ton

Sending 10 tons of wood 700 km every day would cost 100+70=$170 = $17 per ton

 

As you can see the cost of shipping drops dramatically the more you carry even if you are moving them a significantly further distance.

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