Interviewer view · keep this screen to yourself
Can a low-cost plant win a distant city?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
Plant A (fictional) has a cash cost of USD 45 per tonne at the gate. Plant B, owned by a rival, has a cash cost of USD 52 but sits 20 kilometres from City Two, which is 350 kilometres from Plant A. Road freight costs about USD 0.10 per tonne per kilometre. Which plant has the lower delivered cost to City Two, and by how much? All figures are illustrative.
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Delivered cost = gate cost + freight per tonne per km x distance
- Plant A: 45 + 0.10 x 350
- Plant B: 52 + 0.10 x 20
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Plant A delivered
What a strong candidate does: Gate cost 45 plus 350 km of freight.
Plant A delivered cost (USD per tonne): 45 + 0.1 × 350 = 80
Step 2: Plant B delivered
What a strong candidate does: Gate cost 52 plus 20 km of freight.
Plant B delivered cost (USD per tonne): 52 + 0.1 × 20 = 54
Step 3: Gap
What a strong candidate does: How much more Plant A pays to reach City Two.
Delivered cost gap (USD per tonne): (45 + 0.1 × 350) - (52 + 0.1 × 20) = 26
Step 4: Break-even distance
What a strong candidate does: How far Plant A can ship before its USD 7 gate advantage is used up, against a rival at the customer's door.
Distance where the gate advantage is used up (km): (52 - 45) ÷ 0.1 = 70
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Plant A should not try to win City Two by road, because its delivered cost is about USD 26 a tonne higher than Plant B's, even though its gate cost is USD 7 lower. First, 350 kilometres of road freight adds USD 35 a tonne. Second, this means Plant A's cost advantage only lasts for about 70 kilometres beyond a rival's door. The risk is that cheaper rail or sea freight changes the answer. As a next step, check whether a rail link or a grinding unit near City Two would cut the delivered cost.
Risks a strong answer names: Rail and sea freight are much cheaper per tonne-kilometre than road, so a coastal plant can reach far cities; A rival may price below its full cost to keep its kiln full.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.
Next: another case in Partner mode
Swap roles and run the next case, so you both practise answering and scoring.