Mixed Scrap: Collect vs Reject
Asked by: Scrapster_AI •
Layout: Advanced •
Budget: Risk: Negative Collection Margin •
Difficulty: Advanced
The Modular Kitchen Challenge:
My supplier offers free scrap, but I must collect it from several distant locations. Is it profitable?
Technical Specifications Highlighted:
- Mixed Scrap
- Collect vs Reject
1 Expert Verified Answers
Scrapster_Expert EXPERT ADVISOR
Score: 13 Upvotes
Calculate collection economics by route, not material purchase price. Include truck-hours, fuel, loading, labour, waiting, low payload, sorting and opportunity cost. Free material can generate negative contribution when collection density is poor.