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Varad DM253082

The document compares two scenarios for farmers: a Cold Storage Solution and a Direct Selling Model. The Cold Storage Solution reduces wastage and extends shelf life, leading to an 18.29% improvement in monthly net revenue, while the Direct Selling Model offers significantly higher profits (₹64,90,000) but comes with operational complexities. Recommendations include investing in packaging innovations, utilizing real-time demand forecasting, and implementing policy interventions to support both models.

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7 views4 pages

Varad DM253082

The document compares two scenarios for farmers: a Cold Storage Solution and a Direct Selling Model. The Cold Storage Solution reduces wastage and extends shelf life, leading to an 18.29% improvement in monthly net revenue, while the Direct Selling Model offers significantly higher profits (₹64,90,000) but comes with operational complexities. Recommendations include investing in packaging innovations, utilizing real-time demand forecasting, and implementing policy interventions to support both models.

Uploaded by

varad.dm253082
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Part 1

Farmers 50
Production 10000 Kg

Scenario 1: Cold Storage Solution Current With solution


Wastage (25%) 2500 1000
Shelf life (Days) 3 14
Cold storage cost pm 50000
Transport cost per KG 2 2
Selling Price per kg
Farmer - wholesaler 15 15
Retailer - Customer 50 50

Calculate

Daily Sellable Quantity 7500 9000

Daily Revenue 97500 117000

Monthly Revenue 2925000 3510000


Monthly Net revenue (cold storage) 2925000 3460000
% improvement 18.29%
Part 2: Decision-Making

Scenario Comparison
Better Financial Outcome: The Direct Selling Model offers significantly higher profits (₹64,90,000 compared to ₹40,00,000).
Trade-offs:

Cold Storage:
Benefits: Reduced wastage, extended shelf life, stable revenues.
Challenges: Fixed costs and dependency on wholesalers for demand.

Direct Selling:
Benefits: Higher profits, control over pricing, reduced reliance on intermediaries.
Challenges: Limited reach, higher transport costs, operational complexities.

Sustainability and SDGs

SDG 2: Zero Hunger


Cold Storage: Reduces wastage, ensuring more food reaches markets.
Direct Selling: Empowers farmers financially, improving food security.

SDG 12: Responsible Consumption and Production


Cold Storage: Promotes efficient use of resources through longer shelf life.
Direct Selling: Encourages local consumption, reducing wastage.

SDG 9: Industry, Innovation, and Infrastructure


Cold Storage: Investment in storage infrastructure minimizes losses.
Direct Selling: Digital platforms and e-commerce improve supply chain efficiency.

Recommendations

Minimizing Wastage and Maximizing Profits


Invest in packaging innovations to reduce bruising during transport.
Use real-time demand forecasting to prevent overproduction.

Policy Interventions
Subsidies: Government incentives for cold storage investment.
Training: Workshops on using e-commerce platforms.
Partnerships: Collaborate with logistics providers to optimize transport.

Bullwhip Effect Mitigation


Cold Storage: Sharing inventory data with wholesalers reduces uncertainty.
Direct Selling: Digital platforms provide real-time visibility into consumer demand, minimizing distortions.
Scenario 2: Direct Selling Model
Consumer price per kg 40
Transport per kg 3
Platform cost per month 20000
Reachable Demand 70%
Wastage (15%) 1050

Calculate
Assuming demand &
Demand 7000 Production is same
Wastage 1050
Assuming wastage is
Net sellable quantity 5950 during tarnsport
Daily revenue 238000
Transport Cost 21000
Monthly Revenue- Transport 6510000
Monthly net revenue (-platform fee) 6490000
% improvement 121.88%
cantly higher profits (₹64,90,000 compared to ₹40,00,000).

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