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...t. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational tool, used by the US Navy [8], with a statistical analysis of these vessels fuel consumption. 2. Literature review The break-even analysis is a very useful tool for a good estimation for return on investment. Its goal is to find the point, in this case in terms of dollars and units, where investment costs equates profits. Above this point the business begins to obtain profitability [9]. Managerial decisions require a careful analysis of the behavior of costs and profits. 1103 In these c...

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...t. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational tool, used by the US Navy [8], with a statistical analysis of these vessels fuel consumption. 2. Literature review The break-even analysis is a very useful tool for a good estimation for return on investment. Its goal is to find the point, in this case in terms of dollars and units, where investment costs equates profits. Above this point the business begins to obtain profitability [9]. Managerial decisions require a careful analysis of the behavior of costs and profits. 1103 In these c...

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...ral authors have later extended the theory. However, the extension of the uncertainty inclusion has not reduced the usefulness of the basic linear model itself [10]. The break-even analysis is an economic concept currently used in many fields. As an example, it has been used in health business to optimize the service in orthodontic practice in North Carolina, to predict the future financial potential of pharmacy business in Nebraska, to calculate variable costs of telemedicine consultation in Canada and to evaluate the feasibility and managing daily operations of an ambulatory center in Texas [11, 12, 13, 14]. In an engineering project, the break-even analysis was used to decide the optimal distance when the hybrid energy system is more economical than the extension of electric power transmission lines in the north of Turkey. This study pioneered the use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-...

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...ay to calculate how much this reduction is going to be. Furthermore, it is required to calculate how much the armor changing will cost. Having this information is possible to determine when the investment will begin to yield profit, and compare this time against the vessel’s life cycle. The model applied is useful in any investment decision making process, especially in an engineering project. Each shipyard is focused on a different competitive advantage. Cotecmar focuses on product differentiation. It has a world-class infrastructure that allows them to install a high quality ballistic steel [1]. James Osorio Shipyard is focused on low cost. It has developed a supply chain that enables to offer a reliable and low cost product. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce c...

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...against the vessel’s life cycle. The model applied is useful in any investment decision making process, especially in an engineering project. Each shipyard is focused on a different competitive advantage. Cotecmar focuses on product differentiation. It has a world-class infrastructure that allows them to install a high quality ballistic steel [1]. James Osorio Shipyard is focused on low cost. It has developed a supply chain that enables to offer a reliable and low cost product. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational to...

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...estment decision making process, especially in an engineering project. Each shipyard is focused on a different competitive advantage. Cotecmar focuses on product differentiation. It has a world-class infrastructure that allows them to install a high quality ballistic steel [1]. James Osorio Shipyard is focused on low cost. It has developed a supply chain that enables to offer a reliable and low cost product. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational tool, used by the US Navy [8], with a statistical analysis of these vesse...

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...t. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational tool, used by the US Navy [8], with a statistical analysis of these vessels fuel consumption. 2. Literature review The break-even analysis is a very useful tool for a good estimation for return on investment. Its goal is to find the point, in this case in terms of dollars and units, where investment costs equates profits. Above this point the business begins to obtain profitability [9]. Managerial decisions require a careful analysis of the behavior of costs and profits. 1103 In these c...

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...t. However the combined armor means more fuel consumption, less space and a rise of the center of gravity of the vessel [2]. There have been different ballistic tests utilizing both products [3], which have demonstrated the reliability of the systems. The results of these tests would suggest the use of the combined armor, supported on low costs. However, the operational costs need to be taken into account. The escalation of fuel prices and the tendency to reduce carbon dioxide emissions accentuates the importance of similar studies, finding a balance between environmental and economic aspects [4, 5, 6, 7]. This paper presents a new model of variable costs calculation, combining a well-proven naval computational tool, used by the US Navy [8], with a statistical analysis of these vessels fuel consumption. 2. Literature review The break-even analysis is a very useful tool for a good estimation for return on investment. Its goal is to find the point, in this case in terms of dollars and units, where investment costs equates profits. Above this point the business begins to obtain profitability [9]. Managerial decisions require a careful analysis of the behavior of costs and profits. 1103 In these c...

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...eview The break-even analysis is a very useful tool for a good estimation for return on investment. Its goal is to find the point, in this case in terms of dollars and units, where investment costs equates profits. Above this point the business begins to obtain profitability [9]. Managerial decisions require a careful analysis of the behavior of costs and profits. 1103 In these cases the break-even linear model is widely used. Both revenue and total costs are assumed to be linear in this model, i.e. the price and the variable cost per unit are constants. The uncertainty is considered implicit [10]. Jaedicke and Robichek (1964) introduced uncertainty explicitly into the linear model. This extension of the basic model makes it possible to draw more precise conclusions when the probability distributions are known. Several authors have later extended the theory. However, the extension of the uncertainty inclusion has not reduced the usefulness of the basic linear model itself [10]. The break-even analysis is an economic concept currently used in many fields. As an example, it has been used in health business to optimize the service in orthodontic practice in North Carolina, to predict the ...

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...ral authors have later extended the theory. However, the extension of the uncertainty inclusion has not reduced the usefulness of the basic linear model itself [10]. The break-even analysis is an economic concept currently used in many fields. As an example, it has been used in health business to optimize the service in orthodontic practice in North Carolina, to predict the future financial potential of pharmacy business in Nebraska, to calculate variable costs of telemedicine consultation in Canada and to evaluate the feasibility and managing daily operations of an ambulatory center in Texas [11, 12, 13, 14]. In an engineering project, the break-even analysis was used to decide the optimal distance when the hybrid energy system is more economical than the extension of electric power transmission lines in the north of Turkey. This study pioneered the use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-...

Citation Context

...ral authors have later extended the theory. However, the extension of the uncertainty inclusion has not reduced the usefulness of the basic linear model itself [10]. The break-even analysis is an economic concept currently used in many fields. As an example, it has been used in health business to optimize the service in orthodontic practice in North Carolina, to predict the future financial potential of pharmacy business in Nebraska, to calculate variable costs of telemedicine consultation in Canada and to evaluate the feasibility and managing daily operations of an ambulatory center in Texas [11, 12, 13, 14]. In an engineering project, the break-even analysis was used to decide the optimal distance when the hybrid energy system is more economical than the extension of electric power transmission lines in the north of Turkey. This study pioneered the use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-...

Citation Context

...ral authors have later extended the theory. However, the extension of the uncertainty inclusion has not reduced the usefulness of the basic linear model itself [10]. The break-even analysis is an economic concept currently used in many fields. As an example, it has been used in health business to optimize the service in orthodontic practice in North Carolina, to predict the future financial potential of pharmacy business in Nebraska, to calculate variable costs of telemedicine consultation in Canada and to evaluate the feasibility and managing daily operations of an ambulatory center in Texas [11, 12, 13, 14]. In an engineering project, the break-even analysis was used to decide the optimal distance when the hybrid energy system is more economical than the extension of electric power transmission lines in the north of Turkey. This study pioneered the use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-...

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...nd to evaluate the feasibility and managing daily operations of an ambulatory center in Texas [11, 12, 13, 14]. In an engineering project, the break-even analysis was used to decide the optimal distance when the hybrid energy system is more economical than the extension of electric power transmission lines in the north of Turkey. This study pioneered the use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-world business decision making. In some academic fields scientists are trying to add a stochastic linear demand function, which predicts more accurately, but is less suitable for real applications, like the described in the previous references [16]. These studies have shown the usefulness of break-even analysis in engineering projects. For that reason, this tool was selected to determine the best proposal between combined and certified armor, which require the proper estimation of fixed an...

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...he use of break-even analysis applied to hybrid energy use, furthermore introduced an optimization for defining costs and deciding on the better project option between installing the hybrid energy system or the expansion of the transmission line [15]. Nowadays the break-even analysis is considered one of the most useful analytical tools utilized in real-world business decision making. In some academic fields scientists are trying to add a stochastic linear demand function, which predicts more accurately, but is less suitable for real applications, like the described in the previous references [16]. These studies have shown the usefulness of break-even analysis in engineering projects. For that reason, this tool was selected to determine the best proposal between combined and certified armor, which require the proper estimation of fixed and variable costs discussed below. 3. Methodology of break-even analysis 3.1. Method to decide the best option The method to decide which armor type is the best option encompasses three steps: 1. Establish the difference of installation costs in monetary terms. The vessel studied was a “light riverine patrol vessel” that has previous studies and a deep ...

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...meter. The same area with combined armor costs USD$350 installed. Considering the complete shielded area in a riverine patrol vessel is 203 square meters [2], the fixed costs result in USD$71.050 for the combined armor and USD$152.250 for the certified armor, a difference of USD$81.200. The weight of the combined armor was calculated as follows: The polyurethane, once mixed and added, has a density of 1.200 kg/m3. Considering the thickness of this layer is 2 inches (51 x 10-3 m), the weight is 61,2 kilograms 1104 per square meter. A naval steel sheet A131, thickness ”, 79 Rockwell B hardness [17], has a weight of 50,5 kg/m2. The same sheet, but with a 3/16” thickness has a weight of 37,5 kg/m2. These weights are listed in the table below. Table 1. Specific weights for combined armor Weight of steel ” (1 sheet) 50,5 kg/m2 Weight of steel 3/16” (1 sheet) 37,5 kg/m2 Weight of polyurethane (2 inches) 61,2 kg/m2 Overall armor weight 149,2 kg/m2 In the other hand, the certified steel used by Cotecmar, 3/16” ballistic steel, 50 Rockwell C hardness, has a specific weight of 37,5 Kg/m2, i.e., four times less than the combined armor assembly. In a riverine patrol vessel this means that the shi...