There are a lot of creative way to use my file as well.
One of the way is to use solver, setting constrains to get everything in the same factory to have equal ROI, preset price of required raw materials, and you will know which one to produce.
Some item in the same factory are just inferior. Like Wooden Toys is always an inferior choice to Toys if your customer pays the same price, Unless plastic is at a ridiculous high price.
Final bit from me based on my R2 experience
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Its funny to see the replies to my questions keep using many words yet never answer the very simple question.liandri wrote:Your way of thinking is definitely on the individual side, focusing on your own growth but neglecting the importance of your suppliers/customers growth.Ronintje wrote:So you tell me he payed a lot above market value??OBHD wrote:For quarts to become more profitable then stone you need high Q and like what liandri said, when you work togheter as a team where profits are spread it can be profitable because you need that item nomather what for your endproduct. Quarts is not only low priced, the supply/demand is also limited. When you are buying alot of quarts, prices will go up unless you have a provider that can fullfill all your needs.
You write prices will go up when you buy a lot, but i've rarely ever seen market above 5 and mostly it actually was around 1-3.......regularly even below 1 each !!!!!
But despite that you say he payed a lot more for it.
Like 20 each or something???
Try to think in this way, if you supplier grow slower than you, eventually you will be under-supply, so you cannot make use of your production facilities efficiently. On the other hand if your customer grows slowly, no one buys your product and again you slowly pile up your inventory and your growth slowed as well.
You keep saying quartz, so we use this as an example. If you look into the market, we seldom have high Q quartz there, and even they are available, they are in very low quantity, and much more expensive than other available quartz.
Quality comes with a price, and I'm not the type of manufacturer blindly chasing after quality. But that implies that someone out there is able to make high Q quartz, they found it worthwhile to research in quartz. So why develop the quality and productivity when something is so extremely mis-priced? (Other products with similar situations are namely Cattle, Wool)
Quartz in market are basically unusable, and the reason is unstable supply. They all in low quantity, how can you continuously use them as a source? The only way if you are glass/silicon maker is to partner with someone and guarantee his profit. You share your profit in glass/silicon with him. You taking all his profit and pay 5c each for a quartz, very soon you will find yourself lack of supply.
Typed a lot, but it's all in one sentence actually: Think of the supply chain as a whole
You claim i don't have a look at the chain, i say you don't look at my response instead.
1. People selling Quarts at 1-5 each are, to use the word that shouldn't be used, "retards".
2. You must have payed a lot over the market value, from your answer i do get you must have done that but i'm very interested in the price you payed.
3. Even an unstable supply is a nice supply for i still don't see any reason to not use quarts sold at 1 each even when it is only Q0.
In addition to point 3.
You either didn't pay that much of a bonus when you can't make a profit from Q0 Quarts or you didn't really pay enough for your high Q Quarts at all.