Download SJ - KTH

ME 2027 Performance and Cost Analysis
KTH 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
Price
Fixed Cost
Quantity
 The
total cost of running a train is almost
the same whether the reservations are
made to it´s fully capacity or not
Price
Revenues
Fixed Cost
Quantity
 The
revenues must cover the fixed cost
before the company could show profit
Price
Total Quantity
Total Cost
Quantity
 Total
cost is constant and the total
revenue is changing depending on the
quantity
Price
Total Quantity
Total Cost
Quantity


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.
Price
Supply
Demand
Quantity
 The
above example illustrates traditional
thinking of supply and demand.
 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
Volymutveckling X 2000 Göteborg
(personkm)
27 500 000
25 000 000
22 500 000
Bok & Biblioteksmässa
Göteborg
Läkarstämma
Göteborg
Stormen "Per" har
påverkat W02 kraftigt.
20 000 000
17 500 000
15 000 000
12 500 000
10 000 000
7 500 000
5 000 000
2 500 000
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Vecka
2006
2007