Research on World Agricultural Economy

A New Framework for Food Catering Price Determination

Rolandas Drejeris

Agriculture Academy, Vytautas Magnus University, Kaunas LT‑53361, Lithuania

Mindaugas Samuolaitis

Faculty of Business, Kaunas University of Applied Sciences, Kaunas LT‑50468, Lithuania

DOI: https://doi.org/10.36956/rwae.v5i4.1133

Received: 17 June 2024 | Revised: 19 July 2024 | Accepted: 24 July 2024 | Published Online: 18 October 2024

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Abstract

This article aims to propose a reasonable quantitative (mathematical) expressions for the price calculation of food-manufacturing products. Little research has been conducted on the validity of food product pricing; thus we have identified a need for a thorough, systematic investigation in this area. The suggested three methods are also applicable for developing the artificial intelligence system to solve raw food material (resources) quantity management and other inventory issues in collaboration with the food suppliers. We consider the option of an appropriate pricing strategy in the profit-making catering and other food production firms to be a relevant scientific issue, which we have have addressed and proposed solutions for in this article. By analyzing different scientific assumptions and attitudes, informed quantitative decisions were made. We also developed and described quantitative expressions for determining the price of food products using mathematical formulas. Also, we found that a simple three-digit rule, based on logic and proportional modeling of actions, as the main instrument is the most effective approach for formulating these pricing models. Original and innovative mathematical methods for the price accounting of food production have been created and explained. We have also explained how each of the three suggested methods works, along with their advantages and disadvantages in certain situations. Using these recommended methods of pricing will allow food companies to achieve more appropriate commercial results and to make less expenditure for decisions regarding the pricing of food products. In the article, we explained how to calculate the prices of food and catering companies using simple math. The application of any of the three mentioned techniques regarding existing circumstance will enable food production companies to ensure a straightforward yet accurate determination of the product price that aligns with the current situation.

Keywords: Mathematical Expression; Price Determination; Food Companies

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