1. This production process is a long run or short run one.

Give
your comments.
Ans = this production process is a long run because Total Capital In Vestment
Cost (TCC). TCC is calculated by adding WCC to the FCC. WCC is usually
estimated as acertain percentage of the FCC Therefore,
TCC)WCC+FCC)1.15FCC

Total Manufacturing Cost (TMC). TMC refers to TPC subtracting CBP (i.e.,
TMC ) TPC – CBP). Therefore, TPC can be calculated as the total operating
cost (TOC) adding DEPC (i.e., TPC ) TOC + DEPC). TOC is the cost of the
day-to-day operation of a plant and is usually divided into three categories:
DOC, IOC [or fixed operating cost (FOC)], and GE. DOC consists of raw
material costs oil price of U.S.A.), catalyst and solvent costs, operating labour
fees, supervisory and clerical labour fees, utilities (including waste disposal),
maintenance and repairs, operating supplies, laboratory charges, and expenses
for patents and royalties. In brief, all charges related to materials and labours
belong to this category The operating labour fee was obtained from operation
requirements for various pieces of process equipment.28 Turton et al.28
assumed that an operator worked on average 49 week year-1 and that there were
three shifts a day for a continuously running plant. The computation of Zhang et
al.21 gave an operator’s fee of 24 USD h-1 and total operating labour fee of 141
120 USD year-1 for three labours a day (one shift for one labour)

However, for the need of economic analysis, the yields of products from
different production steps of biodiesel are listed . The yields of crude biodiesel,
refined biodiesel, and glycerol via transesterification were 92.5, 62.5, and 27.5
wt %, respectively. The production process of biodiesel includes FAME
Distillation; therefore, the summation of products should not be 100 wt %. The
results indicate the necessity of refining FAME and yielding glycerol of high
price and FAME of high quality. The yield of biodiesel used in the cost analysis
of this study was 62.5% of refined biodiesel. Table 2 shows the elemental
analyses of virgin soybean oil, glycerol, and crude FAME, indicating that the
major elemental contents of these materials are C, H, and O. The increase
of the oxygen content in crude FAME can assist its combustion efficiency.