Research Article

Comparing Transport Corridors Based on Total Economic Cost

Table 3

Range of values used to determine the sensitivity of TEC w.r.t. cost parameters.

Cost parameterMinimum valueMaximum value

Interest rate1% p.a.20% p.a.
Gross margin10%90%
Component cost as a fraction of product value5%90%
Annual inventory cost as a fraction of the value of goods10%100%
Number of components per manufactured product220