Capacity Cost Curve/ Chart anyone?

[Winterfell]

Hi People,

need some help with my graph. I am trying to construct a capacity curve. Mine from table 2 looks a bit odd.

Is there a way I can fit the curve to run much smoother? A friend suggested I use median values but that did not help.

Would curve fitting do the trick? Any ideas?

Ref: I am referring to table 2 and plotting the two costs ( total cost and leased cost ) against equipment rate.

Please also note that equipment rate is not equipment number but equipment raking. for instance, when I finish with the first, I go to the second. so i can only work on one equipment at a time.

Please see attachment.

Appreciate any help../

Thanks!

[Richard Buttrey]

Hi,

One popular way to smooth data is to take a moving average of a range of values. But the first thing to decide is to whether it's reasonable to smooth the data. I'm not entirely sure it is in this case since the raw data involves a big step change at equipment rate 41. However if you do want to smooth the plot line then on row 57 you could add the function

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copy that down to row 127 and use that range instead of the I48:I127 range

[Winterfell]

Hi Richard,

Thanks for the reply. I will try that and get back to you.
The step change is just me removing the fixed costs that assumed to be paid off by the time I am on the 41st equipment. I think also that the fixed cost can also be tapered to make it not so steep...I'll check.

Winterfell.

[Richard Buttrey]

Hi

Re Fixed Costs.
If your accounting system accrues and books these costs over time then fair enough, but I'd be careful since by definition Fixed Costs are just that.
i.e. Fixed as opposed to Variable and usually they do produce big step changes. That's rather the whole point of Fixed Costs