For this assignment you are asked to pick one item from the business/service your previously introduced (delivery of fruits and vegetables)
For this item, you are asked to calculate the EOQ – Economic Order Quantity. A good place to start is by watching this week’s video (EOQ Economic Order Quantity formula and explanation
https://www.youtube.com/watch?v=AYpjPWmlyHM)
When determining the numbers for the variables needed to perform the calculation, be realistic. Research what the actual numbers could be and provide and explanation/rationale for choosing the numbers.
Perform the calculation and explain what the result means to your business.
Follow APA guidelines; include a cover and reference page and submit the assignment in the designated area in week 6.
——–The business I would like to start is a business mainly focusses on the farm products such as vegetables and fruits which don’t appear to be pleasing in their physical outlook and therefore they are separated from the rest which are perfect and left to go into waste, so the company done by through door to door delivery of fruits and vegetables to make it sell because most of the people are reluctant to buy such produces but when home delivery is done with a little lower price they buy the product.
The business majorly deals with the fruits and the vegetables that are seen to be ugly from their physical outlook and the producers are isolating them from the best ones and in most cases, they go at waste, but they are nutrients just like the other ones which are taken to the store. Therefore, it is better not to waste food but instead ensure that there are people who could still realize that these kinds of fruits and vegetables are just of the same value compared to the perfect product, but the difference is only that they look ugly and these may not attract customers when they are packed in the store.
That type of business helps to source the products that are already isolated to go to waste from the farmers, and they are delivered to the clients but on a lower price as compared to the ones which have been packed to the store. One important thing is that the products are nutritious and delicious like the ones which are put in the store, and that is the main reason why they should not go at waste but ensure that they are also consumed because not everyone can afford the ones in the store.
The type of price discrimination would work best for my business is a second-degree price discrimination, that charges the same customer different prices for different units of the product, the price of a good or service varies according to the quantity demanded. Larger quantities are available at a lower price (higher discounts are given to consumers who buy a good in bulk quantities).
I believe it will works better for my company because that is a company against wasting and the second-degree price discrimination will make people buy more products that go to waste, paying less and buy less products from the grocery store.———–
