Computing Food Scale
25 April 2010
Computing Food Scale
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Can you create a discriminant function for when to buy in bulk?
What would your variables be? What would it look like?
The Japanese seem to favor as needed inventory (JIT). What do you favor in your household?
Ever make the mistake of buying ahead of your needs in computing power because of a good offer? I have. Never got much use out of those 100GB drives before they came out with cheaper 300GB ones... or terrabyte drives god forbid. Or a favorite food that you got sick of? Or a product that hit its expiration? Or paid ten times because you didn't buy in scale?
I feel my ancestral foraging and hunting skills constantly brought fourth in the modern marketplace. 'Seems like a waste. I'd rather be hunting antelope.
there are two ideas in this case. Economies of Scale, and the law of diminishing marginal utility.
For every extra item you buy for personal use the less you are satisfied by it. For example you buy 1 big mac you eat it and enjoy it. You decide to buy another but you are somewhat full, and you don't enjoy it wholly. For the same price you got "less" for the 2nd one you bought.
Economies of scale is the gradual decrease in prices as the quantity pruchased is increased. So you pay less to buy more making it more mone smart to purchase more.
so there lies your question what are you buying, how long will it last, and how will the diminishing marginal utility effect you and the product.
