Author Topic: Minimum Ammo Lots  (Read 1787 times)

Col Toda

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Minimum Ammo Lots
« on: 21 October 2016, 09:30:30 »
The idea that a unit would like to use Precision , semi-guided , Homing , ARRAD or other non - Standard ammo and cannot ever reasonably get it from the Client's logistical train might actually commission a ammo manufacturer to make it for the unit directly . The down side is the retooling and associated costs for doing so would be demand a certain minimum lots size during any quarter in which it was made . So what do you think the lot size should be ? And how much over  your own unit's needs is it if any ?  Say a Small Factory making 1,200 tons of high tech ammo a year so the minimum lot size to buy is 300 tons in a quarter .  A Large factory would be 3X more . Not a big issue for my unit now but when it was much smaller depending on the Client ammo shortages happened from time to  time . In a strategic game the unit may very well buy in , build , or steal the factories to guarantee the ammo flow required will be available .

Demon55

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Re: Minimum Ammo Lots
« Reply #1 on: 25 October 2016, 05:20:22 »
Enough to keep your magazines topped off.

Col Toda

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Re: Minimum Ammo Lots
« Reply #2 on: 28 October 2016, 04:37:01 »
Yes it does mostly but it also makes 2 major problems . 1 : Cash flow ; when you have to provide your own ammo and the client that does not have ready access to the ammo type but is contracted for some percentage of support they reimburse you with cash to replace it from your own sources . This means a lot of cash is tied up in inventory and is not available to off set any other problem . 2 : Your lot gets redirected to the national forces in which the factory resides ( due to some declared emergency ) this means the factory owner pay you a penalty but your ammo does not get to you for months or even years . To hedge against that problem you have to maintain an even larger inventory which means an even larger cash flow problem . Just check out how much 300 tons of semi guided ammo costs .  A mercenary company  is a business and as such has all the inherent problems of such . Before I could horde as much ammo as my projected needs was going to be for years I had to put aside cash for a long time to get in that position .  I found that the only way to almost guarantee it is to build my own munitions factories sell most of the ammo produced to the Government or other mercenaries and you still have problem 2 above but this time you do not get paid for breach of contract penalty .
« Last Edit: 12 January 2017, 10:52:22 by Col Toda »

 

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