ME 2027 Performance and Cost AnalysisKTH 2007
By Johan Forsberg and Filip Westerlind
SJ is the mayor rail road company in Sweden and it´s 100 % government owned
We have chosen to look at the cost of running one train
Among the many cost models used by SJ we decided to look at CVP, a form that evaluates the time dependent way of supply and demand sales
The total cost of running a train is almost the same whether the reservations are made to it´s fully capacity or not
Fixed Cost
Quantity
Price
The revenues must cover the fixed cost before the company could show profit
Quantity
Price
Fixed Cost
Revenues
Total cost is constant and the total revenue is changing depending on the quantity
Total Cost
Total Quantity
Quantity
Price
Fixed cost can change and therefore the total cost may change. The fixed cost is in reality a partly fixed cost.
For example, when an additional wagon is needed due to increased capacity the fixed cost will raise. In this scenario adding a wagon is a fixed cost rather than a variable cost.
Total Cost
Total Quantity
Quantity
Price
The above example illustrates traditional thinking of supply and demand.
Price
Quantity
DemandSupply
In SJ´s case demand increases closer to departure time, i.e. demand depends on time
The supply is constant, because the number of seats available are same
The sooner the ticket is bought the cheaper it is for the customer
By offering prices according to demand SJ maximizes the reservations, i.e. they change prices frequently over time
Yieldutveckling totalt per klass, X 2000
(personkm)
0
2 500 000
5 000 000
7 500 000
10 000 000
12 500 000
15 000 000
17 500 000
20 000 000
22 500 000
25 000 000
27 500 000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
Vecka
2006 2007
Bok & BiblioteksmässaGöteborg
LäkarstämmaGöteborg
Stormen "Per" har påverkat W02 kraftigt.
Volymutveckling X 2000 Göteborg