Outline of the BIOCORE OPEX model Sample Clauses

Outline of the BIOCORE OPEX model. According to Xxxxxx et al. 2012, the annual operating expenditures (OPEX) can be grouped into direct or variable manufacturing costs (DMC), fixed manufacturing costs (FMC) and general expenses (GE). The following Table 2 shows the types of cost items as grouped into these categories following Turton et al. 2012. Table 2: Cost items included in direct costs, fixed costs and general expenses. DMC FMC GE Raw materials Depreciation Administration costs Utilities Local taxes and insurance Distribution and selling costs Operating labour Plant overhead costs Research and development Direct supervisory & clerical labour Maintenance and repairs Operating supplies Laboratory charges Patents and royalities Source: Turton et al. 2012 Ideally, all cost items listed above would be calculated directly. However, only limited data is available for the BIOCORE processes and, in particular, no equipment sizing is possible. Therefore, estimation procedures are necessary. According to Xxxxxx et al. 2012, OPEX can be determined when the following costs are known or can be estimated:
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