Discussing the parameters of preservation of perishable goods in a cold logistic chain model

Abstract

The 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 determine 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 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 an attainable insurance policy.