Harvesting spontaneous vegetation or purchase medicinal herbs from the market? – Case study
2010
Manole, V., Academy of Economic Studies, Bucharest (Romania). Faculty of Agricultural and Environmental Economics | Istudor, N., Academy of Economic Studies, Bucharest (Romania). Faculty of Agricultural and Environmental Economics | Popescu, C.G., Academy of Economic Studies, Bucharest (Romania). Faculty of Agricultural and Environmental Economics
The paper analyses the efficiency of material resources supplying of an enterprise that processes medicinal herbs. The objectives of the research are to identify the most cost-effective alternative of supplying herbs, out of two possible sources: spontaneous vegetation, by initiating a campaign of collection, or purchase them from contractors. Econometric models are developed for choosing the optimal solution, entering data from a business of processing medicinal herbs in a computer program. The results show that there is a quantity of material resources for which is more profitable to get it by initiating a campaign of collecting plants from spontaneous flora, after which, for any additional quantity, it becomes more efficient to be purchased from the market.
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