DETERMINATION ON BUYING PRICE OF RAW MATERIAL RICE OF QUALITY IMPROVEMENT AND PACKAGING SAMPLE FACTORY

Abstract

Until now, this sample factory buys the raw material rice by consideration of only there majorrice specifications; % humidity,% broken rice and rice odor. The price determination was done bybuyer decision without the calculation formula affecting to non uniform raw material cost. Hence, thissurvey and analytical research has the objectives to determine 1) the other factors of rice specificationbeing used for price determination and 2) the buying price formula giving the satisfaction ofstakeholder such as buyer, seller and consumer etc. Data collection was done by using constructedinterview forms from 3 sellers and 2 purchasing managers of which one was from this factory. Themajor results were found that the three mentioned above rice specifications were considered as majorfactors to determine the buying price and % humidity was the most important factor. The two multipleregressions representing the buying rice model (y1(x) and y2(x)) from same 18 rice samples weredetermined; y1(x) = 1593.459 - 53.477 (x1) - 62.664 (x2) + 23.839 (x3) from real buying condition ofthis factory and y2(x) = 757.577 +18.672x1 +15.988x2 + 5.393x3+44.463 x4+30.165 x5+4.726x6+19.638 x7 from using the buying conditions given by interviewees ; x1 = % humidity, x2 = %broken rice, x3 = rice odor, x4 = rice contamination (number of particles), x5= rice color (yellow towhite), x6 = % rice fluffy, x7 = amylase test (color to no color)From the equation test, y2 showed more similar buying price comparing to the real buyingprice (y) than y1. Finally, this finding can be used as a simple way to determine the rice buying pricedepending on its different specifications. However, more rice samples should be considered toincrease the model credibility.