I am now produce some gas, and let my factory built in the red area.
If I want to produce some steel, should I put my new factory in the green area? The cost for red is 15c and 4.5c for green, and I think it is too expensive in the red though it produces 20% faster.
Am I right?
Where to build for the production of steel
Moderator: moderators
You need to bring things back in terms of profit per hour. Not of cost per unit. It's the only way to sort things out, because there are some cases where it's more profitable in green, and some where it's more profitable in red.
For steel, it's hard to put forth any calculations, because it depends whether you produce your own coal, iron, and chems; whether you produce your own power and water for the coal and iron, etc. Depending if you produce them or not, it might be more interesting to produce in red or green. The general rule is that the more raw mats you buy from other players, the more red becomes profitable. Because your 70/80 kapis of raw mats get more steel made out of them, and the production cost becomes more neglible in the equation. It's like grocery shopping and getting the family size pack for an extra euro: it's only a good deal if the regular size pack is already worth a lot more than a euro to begin with.
Power is a good example, because it has no supplies, so everyone is on the same boat. Its equilibrium point is 0.14. In other words, if you sell power for less than 0.14, you make higher hourly profits with a power station in green (because the production cost is really low). If you sell it for more than 0.14, you make higher hourly profits in red (because once sold, the extra power you produced with the red area bonus represents more money than the extra production cost of red). And if you sell it at 0.14 exactly, the hourly profit in red and in green is equal.
So, the absolute answer is to take an excel spreadsheet on one side, kapitools on the other, and do the profit per hour calculations for your supply chain in red, and in green, and compare them. The general rule is it's better to invest in red anyway, because as your selling price raises, so does the advantage to be producing in red. And soon or late, you'll be raising your Q, and therefore your sale price.
For something you'll want to keep Q0 forever -like construction steel-, you can get away with it in green, but you still need to do the math, and think the other way around: it might be more profitable in green, but only if you manage to get all the supplies below a certain price. You need to figure out what that price is in your personal case and never resupply above it, otherwise, you'd loose the benefit of having built in green.
For steel, it's hard to put forth any calculations, because it depends whether you produce your own coal, iron, and chems; whether you produce your own power and water for the coal and iron, etc. Depending if you produce them or not, it might be more interesting to produce in red or green. The general rule is that the more raw mats you buy from other players, the more red becomes profitable. Because your 70/80 kapis of raw mats get more steel made out of them, and the production cost becomes more neglible in the equation. It's like grocery shopping and getting the family size pack for an extra euro: it's only a good deal if the regular size pack is already worth a lot more than a euro to begin with.
Power is a good example, because it has no supplies, so everyone is on the same boat. Its equilibrium point is 0.14. In other words, if you sell power for less than 0.14, you make higher hourly profits with a power station in green (because the production cost is really low). If you sell it for more than 0.14, you make higher hourly profits in red (because once sold, the extra power you produced with the red area bonus represents more money than the extra production cost of red). And if you sell it at 0.14 exactly, the hourly profit in red and in green is equal.
So, the absolute answer is to take an excel spreadsheet on one side, kapitools on the other, and do the profit per hour calculations for your supply chain in red, and in green, and compare them. The general rule is it's better to invest in red anyway, because as your selling price raises, so does the advantage to be producing in red. And soon or late, you'll be raising your Q, and therefore your sale price.
For something you'll want to keep Q0 forever -like construction steel-, you can get away with it in green, but you still need to do the math, and think the other way around: it might be more profitable in green, but only if you manage to get all the supplies below a certain price. You need to figure out what that price is in your personal case and never resupply above it, otherwise, you'd loose the benefit of having built in green.