Economy Based-on Research On Life Cycle Cost Of Underground Granary

The food crisis, energy crisis and the financial crisis are called the three major crises in today’s world, which have serious influence on peace and development. Among the three crises, guaranteeing food security is of great significance for the economic development, social stability and national independence. It is also a longterm, arduous and complicated task. In the "Project construction plan of guaranteeing the food supplying and storing safely(2015-2020)", the National Development and Reform Commission, the Ministry of Finance, and the State Administration points out that by the end of 2015, our country will increase 50 million tons new granaries’ storage, focus on solving the problem of dangerous and old granaries at the same time, and encourage the society to build the wisdom granaries by diversified investment. However, the overground granaries’ problems mainly maintains: Firstly, the high temperature of the overground granaries causes the food damp and hot, qualities degradation and insect mildew damages. Secondly, the chemical fumigation residue causes the food pollution. At last, artificial refrigeration wastes a lot of energy. At the same time, the construction lands are used more and more. The construction of overground granaries occupied a lot of land resources, too. As a result, the underground granaries’ building will save energy, save land, refuse pollution and cause low loss. Therefore, the development of underground granaries are inseparable with its cost. In the paper, it will combine the characteristics of underground granaries and use the application of the theory about the whole life cycle cost on underground granaries. It is mainly for the following research:(1)According to collecting and reading of literature, starting from the concept of the whole life cycle cost, basing on the domestic and foreign research on the whole life cycle, carrying the theory of whole life cycle cost to the underground granaries, it highlights the characteristics of the whole life cycle cost to the underground granaries, points out the differences between the analysis method now with the analysis method before and introduces the differences between the underground granary and the overground granary. At the same time, it establishes the whole life cycle cost model in the case of considering the time’s value of financing.(2) It analysis the total project life cycle cost of the granaries, including the construction cost, operating cost, and recycling value three parts and explains what the three parts constitute specifically. Basing on the detailed analysis, it chooses the same grain’s area of two different kinds of overground granaries and one underground granary’s composition and comparative analysis for each cost. At last, it points out the dominant and recessive benefits of the underground granary.(3) On the basis of decision background among the single-store granary, the squat silo granary and the underground granary, it uses the whole life cycle cost’s method and the analysis steps and verifies the feasibility and effectiveness of application in underground granaries. In different discount rate and different life cycles of underground granary for the whole life cycle of economic evaluation, it concludes the economic evaluation of underground granaries’ full life cycle cost.(4) It concludes economy analysis’ result and promote further discussion of underground granaries’ full life cycle cost and analyzes the different granaries construction’s economic factors under the different parts in our country.Above the research, considering the whole life cycle the granaries projects during the period of its total cost, it can make investment planning, project evaluation and the determination of construction more scientific and reasonable, which has more advantages than the traditional analysis method before. Therefore, it introduces the concept of life cycle cost(LCC) into underground granaries, which can evaluate the granaries economically, familiars with comprehensive understanding of the underground granaries’ all aspects of the whole life cycle cost and provides technical support and decision-making basis for the next step to build granaries.