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Logistic and Economical Preconditions for Production of Pellets From Sawdust

Abstract

The objective of the paper was to determine the costs of production and production effectiveness of pellets made of sawdust and characteristics of logistics of raw material carriage and distribution of pellets. The scope of the paper covered the research carried out in the branch of DREWEX company located in Chotelek town (Świętokrzyskie voivodeship, Province of Busko Zdrój). Unit costs of pellets production were: 513.4 PLN∙t−1 for option 1, 423.3 PLN∙t−1 for option 2 and 393.3 PLN∙t−1 for option 3. The most favourable was option 3 when the pellets were produced on the technology line in the 3-shift system day and night. The average distance to seven cities from which sawdust was delivered was 43.6 km and the distance to which production was distributed to ten cities was on average 105.5 km.

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Reengineering of production processes and its impact on the financial situation and business performance of the company

calculation: (4) ROSC = Profit Share   Capital ROSC = {{Profit} \over {Share\;Capital}} Return on sales ROS , which is a ratio widely used to evaluate the entity’s operating performance. ROS indicates how much profit an entity makes after paying for variable costs of production, such as wages, raw materials, etc. (but before interest and tax). It is the return achieved from standard operations and does not include unique or one-off transactions. This indicator encompasses the profit margin aspect. ROS is usually expressed as follows: (5) ROS = EBIT

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