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Uniform gross profit for various operating states

IP.com Disclosure Number: IPCOM000201581D
Publication Date: 2010-Nov-15
Document File: 4 page(s) / 24K

Publishing Venue

The IP.com Prior Art Database


Maintaining uniform gross profit per unit regardless of state for systems that incur a fluctuating costs for various operational states.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 34% of the total text.

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Uniform gross profit for various operating states

Disclosed is a method of maintaining constant gross profit regardless of varying operating states. Many, if not most, systems have varying costs associated with different operating states. States, as used in this description, are operating states such as in motion, stationary, generating, washing, or static. The solution described here passes those fluctuations in cost to the consumer while maintaining a fixed profit per system per unit of time.

Four examples of systems with varying costs are:
(1) A washer in a Laundromat incurring costs that include utility charges while washing clothes but only incur fixed costs while dormant waiting for the patron to unload clothes

(2) A moving taxi-cab incurring fuel costs while transporting a patron but not incurring those costs while waiting for the patron to return from a quick shopping stop

(3) A cargo trailer incurring hourly driver labor during transport to a loading dock but not incurring those costs while the trailer is left at the loading dock overnight

(4) Tape storage incurring no incremental costs in a dormant state in the rack but incurring greater expense while spinning in the machine.

The disclosed method would work equally well with any of the above four examples. In fact, this generic method will work with any system having these three key components:
(1) Capacity to determine system state via sensors
(2) Capacity to track start and end time of state change
(3) Historical data of system consumables, maintenance requirements, labor, and other variable usage costs.

Step 1 - Normalizing System consumables

System consumables include items such as gas, electricity, water, and coal. A consumable is a factor of production that is consumed by the system. This method converts all consumables to average dollar cost per operation hour. For example, a washer in a Laundromat consumes water and electricity. Water usage would usually be reported as gallons per cycle. Electricity would be reported as kWh per cycle. This method calculates the per hour electrical cost as: Cost = Cycles * K * P where Cycles is the maximum number of cycles per hour possible, K the kWh per cycle rating of the washer, and P is the price per kWh charged by the utility. Thus, the method returns the cost per operating hour for electricity of a washer at full utilization. Water charges would be calculated the same way.

Fuel costs for a taxi-cab would be calculated differently. The normal calculation for gasoline consumption is miles per gallon. However, this method requires converting miles per gallon to mean gallons per driving hour multiplied by price per gallon. This is calculated as: Cost = MPG / mMPH * P where MPG is miles per gallon, mMPH is the mean miles driven per hour at full utilization, and P is the mean price per gallon of gas. Thus, the fuel cost for the taxi-cab is reduced to an average dollar cost per operating


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hour at full utilization.