ROUND 1: Location and Capacity Planning

The Vikings and the Wakandans have come to an agreement to produce the beer cups. King Lothbrok
has allocated a budget of 50 lakh Krona to set up plants for production. The Viking kingdom consists
of 4 regions, which have been described at length for your perusal in the region description. Each
region has its own remarkably distinct features and therefore the demand for beer cups has shot up
considerably, since the regions are now highly dependent on Dragon activity. In order to fulfil this
demand, various quarries have been set in 10 such locations which has its own set of specialities.
Carefully, determine the most cost-efficient method of producing the beer cups as well as fulfilling the
requisite demand as per the plant chosen.

This round presents you with the following tasks:

• Figuring out the best location for setting up a quarry and manufacturing unit
• Deciding the optimum capacity for each of your quarry
• Fixing the quantity of Dragonite and other minerals to be mined according to the ratios

Refer to the following information to help you in the planning process.

Planning:

1. A budget of 50,00,000 krona has been allotted for the operations. You cannot exceed the
budget.
2. There are 4 regions in the Viking Kingdom: Asgards, Ragnarök, Jötunn, and Valhalla.
Each region has 2-3 quarry locations at which manufacturing plants can be setup. Please go
through the region description to know more about each region.
3. You need to setup manufacturing plants in at least 2 quarry locations and a maximum of 4
manufacturing plants. Accordingly, a minimum quantity of minerals is to be mined.
4. Every quarry location has its unique fixed and variable costs. Further, each region has a specific
type of Dragonite available, specified in the table below:

Type of Dragonite Red Green Blue Yellow

Region Asgard Ragnarök Jötunn Valhalla
Quarry Trondheim Viborg Ribe Hedeby Helsingborg Roskilde Visby Paaviken Skara Sarpsborg

Dragonite and various other minerals are to be mixed in a unique ratio (refer cost sheet)
according to the region in which the manufacturing plant is located to form the beer cup. (The
colour of Dragonite only affects the mixing ratio and does not play any role in determining the
sale or demand of beer cups)
5. After deciding upon the location, a quarry type based on production capacity needs to be
decided. The three types of capacities are small, medium, and large.
Note: Only 1 manufacturing plant of a specified size can be setup in one quarry location.
6. The capacity specifies maximum number of cups you want to produce from that unit. You
may, however, decide to produce any number of cups lesser than maximum limit.
 7. The number of cups that are produced depends on the quantity of minerals mined. A Kg of
mixture of minerals can make 250 cups.
8. Total Fixed cost is calculated by multiplying the fixed cost to the size of manufacturing plant.
Total Fixed Cost (TFC) = Fixed Costs x Size of Manufacturing Plant
9. Total Variable cost is calculated by multiplying the variable cost specified to the desired
production capacity of the manufacturing plant.
Total Variable Cost (TVC) = Variable Cost x Desired Production Capacity of Manufacturing
Plant
10. Total Mining Cost (TMC) is the cost incurred by mining the desired quantity of minerals.
11. Sum of Fixed, Variable and Mining Costs gives the Total Cost
Total Cost = TFC + TVC + TMC

Example:

For instance, you decide to set up a Medium Size quarry at Ribe.

Total Fixed Cost= Fixed Cost x Size of Quarry

= 114 x 10500 = 1197000 krona

Suppose your desired production capacity = 180000 cups

Then,

Total Variable Cost= Variable Cost x Desired Production Capacity of Manufacturing Plant

= 0.63 x 180000 = 113400 krona

Amount of Minerals mined= No. of cups/250

= 180000/250 = 720 Kg

For 720kg of minerals, Green Dragonite would be used for which the mining ratio = 8:4:1:2

So, the cost of mining Green Dragonite = 8/15 * 325 * 720 = 124800

Similarly, this can be done to obtain the cost of mining other minerals.

The sum of these costs will give the Total Mining Cost.

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Evaluation parameter:

1. The team will be evaluated solely based on profits generated at the end of the game.

2. The savings on the budget from this round will be added to profits.

3. Profits from all rounds will be calculated to get the total profit.

*Happy Gaming*