How to compute marginal cost surface

Discussion created by sohelURP on Jun 10, 2010
Hi there,
What I have here is raster cells with amounts and their costs for biomass (farmgate price as £/ton). Using transport network , cost of distance (£/ton)has been calculated between them(cost for transporting these feedstocks/ biomass). So these are added with feedstock costs computed earlier.

Now the marginal cost of supplying a specific amount of biomass/feedstock has to be calculated (for which I???m not finding ways given the conventional tools available in ArcMap).

The marginal cost procedure is to rank(lowest to highest) the delivered cost (farmgate price+ transport cost) of all supplies from pixels within the boundary and calculates the cumulative potential supply of biomass/feedstock from those ranked pixels given a threshold/demand. It has to run for all cell so that a marginal cost surface can be generated for the whole area.
Changing the threshold/demand/capcity will change the marginal cost surface obviously.

Have anyone has any clue on how to do this?

Either by conventional raster calculator, model builder, python scripts on anything else within ArcGIS desktop extensions? Do network analyst be better equipped to do it if raster cells are converted to points (origin and destinations)?  If yes, how this can be solved?

I don???t know which location allocation model will serve the purpose as it the number of facilities are unknown and the objective is not to  minimize distance but overall costs.

Any suggestion/help will be highly appreciated.