variable and quantity as the independent variable. It was assumed that 

 the rationale for quantity discounts lies in the progressive operating eco- 

 nomies realized by handling larger and larger unit sales up to the full 

 carload level, and that the economies bear a rough relationship to handling 

 times (i.e., herein loading times as derived from data summarized else- 

 where in the bulletin). The tentative amounts were interpolated from the 

 values reported by a number of retail units. Some units also distinguish 

 between mixed carloads and straight carloads of one feed in determining 

 quantity discounts. There are undoubtedly economies on the latter vs. the 

 former. 



It is not intended to suggest that the entire list of points in Table 8 

 be applied to all situations, but rather that quantity discounts be made pro- 

 gressive by several stages, and alike for comparable unit purchases. There 

 is admittedly a problem of variation (or adjustment) when purchases of 

 a given producer vary seasonally, or for other reasons, and of specifying 

 the time period involved. 



From data obtained in the study, the values in Figure 5 were inter- 

 polated. It is apparent that there are progressive economies obtained as 

 size of delivery increases. The rate of decrease after 2^/^ tons (50 bags), 

 however, is probably slight. The suggestion of decreasing per unit delivery 

 costs with increasing size of delivery points toward the equity of "actual 

 delivery costs" or a graduated system of charges rather than a constant per 

 unit charge. The idea of a minimum delivery charge is widely practiced 

 in the distribution of other commodities. For the retail grain-feed unit. 



UJ 

 Q. 



V) 



q: 



< 



-J 

 -J 

 o 



Q 



3 

 O 



o 



\ 00 ?^ 



o 



Figure 4. Comparison of assumed quantity discounts with net decreases 



loading labor cost units. 



in 



17 



