Optimal dynamic pricing and ordering decisions for perishable products

Chew, Ek Peng; Lee, Chulung; Liu, Rujing; Hong, Ki Sung; Zhang, Anming

doi:10.1016/j.ijpe.2013.12.022

Cited by 61 publications

(36 citation statements)

References 19 publications

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“…Wang et al (2013) developed an inventory model for noninstantaneous deteriorating items to seek the optimal dynamic pricing strategy. Chew et al (2014) formulated an inventory model for perishable items to determine the optimal order quantity and the prices with a multiple period lifetime. Gallego and Hu (2014) investigated dynamic price competition in an oligopolistic market with a mix of substitutable and complementary perishable assets.…”

Section: Introductionmentioning

confidence: 99%

Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Zhang

Wang

et al. 2015

International Journal of Production Economics

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Section: Introductionmentioning

confidence: 99%

Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Zhang

Wang

et al. 2015

International Journal of Production Economics

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“…When product lifetime is considered, products at different ages are different but still substitutable, which may affect customer purchasing behaviors. Chew et al [82] studied an integrated ordering and dynamic pricing problem for a kind of perishable product with multiperiod lifetime. The products at different ages, mutually substitutable, are all available in the market.…”

Section: Models Considering Product Differentiationmentioning

confidence: 99%

Quality and Operations Management in Food Supply Chains: A Literature Review

Huang

et al. 2018

Journal of Food Quality

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We present a literature review on quality and operations management problems in food supply chains. In food industry, the quality of the food products declines over time and should be addressed in the supply chain operations management. Managing food supply chains with operations management methods not only generates economic benefit, but also contributes to environmental and social benefits. The literature on this topic has been burgeoning in the past few years. Since 2005, more than 100 articles have been published on this topic in major operations research and management science journals. In this literature review, we concentrate on the quantitative models in this research field and classify the related articles into four categories, that is, storage problems, distribution problems, marketing problems, and food traceability and safety problems. We hope that this review serves as a reference for interested researchers and a starting point for those who wish to explore it further.

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“…The studies are contributed to the literature by introducing different points such as price sensitive customer approach, return products, stock levels and also seasonal products. Although Elmaghraby and Keskinocak [12] provide a detailed review of dynamic pricing in different scenarios for different inventory situations and customer classification, the same area continues to be discussed in recent years [4,[13][14][15][16][17][18][19][20][21]. However, the discounting and replenishment decisions are not modeled in these studies, except Geoffrey et al In addition to these areas of works, some studies categorized the selling price time periods into terms; however, generally short term is preferred [22][23][24].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Urgency of the need for a particular product sold for a particular price is also important, in addition to the balance between the price and shelf life. To define how much a product is needed by customers, it is necessary to reveal the benefit and cost relationship through product comparisons [16]. For this reason, customers should compare competitors or substitution products.…”

Section: Dynamic Pricing Problemmentioning

confidence: 99%

A New Dynamic Pricing Model for the Effective Sustainability of Perishable Product Life Cycle

Tekin

Erol

2017

Sustainability

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Perishable products run their life cycle in a short period of time due to the shortness of their shelf lives. Product efficiency falls when especially non-recyclable products are thrown away without being used. Furthermore, this kind of products that unnecessarily occupy shelves of supermarkets cause supermarkets to follow an insufficient stock management policy. Unconscious and unplanned use of our limited natural resources will deteriorate the product portfolio for future generations. Such unconscious production and consumption patterns will disrupt natural balance and damage sustainability of products. In addition to creating very high costs for producers, sellers and consumers alike, these unsold or stale products lead to environmental problems due to such pricing policies. In other words, although the products have to be thrown away without being sold is attributed by many managers to be attributable to the unplanned over-orders, the actual reason is something else. The real contributor of the problem is changing purchase attitudes of customers because of wrong pricing policies of wholesaler. In addition, limited resources are also consumed fast and in unnecessary amounts. The imbalance in respect to the sustainability of these products leads to increase in the production costs, procurement costs and failure to achieve balance among products to be kept in storage houses as some of the products occupy stocks unnecessarily. In the present study, a new pricing policy is developed for product stock whose shelf lives are about to expire and generally become waste to increase salability of these products in reference to fresher stocks of these products. The present study, which is designed to reduce the above-mentioned losses, will seek to minimize the cost of waste, maximize the profit earned by supermarkets from the product, maximize product utilization rates and ensure sustainability of products and stocks as well. Fulfillment of these objectives will increase productivity and enhance the significance of product efficiency and nature-friendly attitudes.

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Optimal dynamic pricing and ordering decisions for perishable products

Cited by 61 publications

References 19 publications

Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Optimal dynamic pricing and replenishment cycle for non-instantaneous deterioration items with inventory-level-dependent demand

Quality and Operations Management in Food Supply Chains: A Literature Review

A New Dynamic Pricing Model for the Effective Sustainability of Perishable Product Life Cycle

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