Premium
A QUEUEING MODEL FOR EGG PRICE DETERMINATION
Author(s) -
Strong S. M.,
Wolanowski A. M.
Publication year - 1981
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1981.tb00394.x
Subject(s) - queue , commodity , profit (economics) , queueing theory , function (biology) , microeconomics , economics , business , operations research , computer science , finance , mathematics , computer network , evolutionary biology , biology
The determination of the price paid to its suppliers and by its customers is a major task for some marketing authorities. The commodity arrives randomly at the authority's facility and is removed randomly by customers. Between arrival and departure, the commodity awaits processing, is processed (graded, packed), and awaits removal by a customer. It is suggested that this similarity to a queue enables a profit function, dependent on price, to be constructed. Determination of the price maximising this function is seen to be one solution to the price setting problem.