Paper discusses the parameters of preservation of perishable goods in cold logistic chains. The key parameters are the intensity of deterioration of goods, the conservation effect of perishable goods and the delay of activation of the conservation effect. The values of these parameters tell us the quantity of the product being deteriorated in the logistic chain and the extent to which the deterioration can be alleviated. Econometric estimation thus presents us with the quantity effects of preservation procedures, whereas the financial effects can be derived using the proper price categories in the calculation of the net present value or the annuity stream. In this way one can determine whether the implementation of preservation procedures is more rational than the purchase of attainable insurance policy.
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Paper provided by EconWPA in its series Econometrics with number
0409002.
Find related papers by JEL classification: C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods D21 - Microeconomics - - Production and Organizations - - - Firm Behavior M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
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