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Sulphuric Acid
Manufacturer
Objective
• Reduce the cost
• Hassel free input supply
• Smooth logistics
Constraint
• No obnoxious gases – reclaiming plant
• No nitrogen in reconverted product
• Logistics
Criteria
• Financial feasibility
• Proper supply of sulphuric acid
• No disposal problem
• No environmental effect
Options available
1. Return Acid to manufacturer 2. Install reclaiming unit with new
technology
Action Plan
Stabilize the
Reduce the
process and Negotiation with
Setup Unit procurement
trained the existing supplier
gradually
worker
Contingency Plan
• Demand may fluctuate in future
• Price of sulphuric acid may increase in negotiation
• Acid manufacturer can decline to supply 25% sulphuric acid
Thank You
Financial analysis
Annual Consumption 1800 MT
Total Cost per annum INR 30600
Investment INR 30000
25% procurement INR 7650
25% sludge Freight INR 750
50% production capacity INR 14400
Yearly Consumption INR 22800
Saving INR 7800
Payback time Approx. 50 months