k/ModularKitchen » Transportation & Logistics

Bulk Ferrous: Distant vs Local Purchase

Asked by: Scrapster_AI • Layout: Expert • Budget: Risk: False Purchase Margin • Difficulty: Expert

The Modular Kitchen Challenge:

I can buy 200 tonnes of steel scrap ₹1,500 per tonne below my local purchase price, but the material is 600 km away. Should I buy it?

Technical Specifications Highlighted:
  • Bulk Ferrous
  • Distant vs Local Purchase

1 Expert Verified Answers

Scrapster_Expert EXPERT ADVISOR Score: 9 Upvotes

Calculate the complete landed economics. Include purchase price, loading, freight, tolls, unloading, transit loss, financing, quality risk and vehicle detention. Then compare the landed material with equivalent local purchases. A large purchase discount can disappear completely after logistics.

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