Simulator Primitive: Sourcing & Capex

Objective

To model the “Unit Economics” and “Startup Capital” of a business by hooking into B2B price indices and supplier lists.

Data Hooks

• Primary Source: B2B platforms (Indiamart, TradeIndia).
• Secondary Source: Commodity price indices (for raw materials like steel, chemicals, tea).
• Tertiary Source: Custom machinery catalogs.

Simulation Variables

1. Raw Material Unit Cost

• Logic: Current Market Price + Inbound Logistics + GST (Input).
• Dynamic Input: Live price per kg/liter/unit of the core material (e.g., Tea leaves, PCBA, Fabric).
• Scenario Impact: Shifting from “Premium Estate Tea” to “Wholesale Blend” triggers an immediate margin update.

2. Machinery & Equipment (Capex)

• Logic: Sum of Equipment Blocks + Installation + Commissioning.
• Archetype Triggers:
  • Chai Walla: Semi-automatic boiler (₹15,000) vs. Manual setup (₹5,000).
  • Electronics Assembly: SMT Line (₹2 Crores) vs. Manual soldering stations (₹10 Lakhs).

3. Packaging & Consumables

• Logic: Cost per unit * Projected Volume.
• Scenario Impact: Choosing “Plastic-Free Packaging” increases unit cost but improves the “Sustainability Score” and unlocks premium market segments.

Scenario Modeling: “The Margin War”

The Simulator allows users to fight for every percentage point of margin:

• “The Luxury Label” Scenario:
  • Sourcing: High-cost, organic raw materials.
  • Packaging: Premium, glass/metal.
  • Outcome: High unit price, low volume, high brand equity.
• “The Volume King” Scenario:
  • Sourcing: Bulk, commodity-grade raw materials.
  • Packaging: Standard, high-speed plastic.
  • Outcome: Low unit price, massive scale, high throughput requirement.

Implementation Note for AI Services

The AI must suggest 3 “Tiers” of sourcing (Economy, Standard, Premium) for every business idea to give the user immediate scenario options.