Optimal pricing model for non-instantaneous deterioration items with price and freshness sensitive demand under the e-commerce environment in China

Xu, Wei‐Hua; Zhou, Shujun; Zhao, Ketong; Shi, Yixuan; Sun, Baiqing

doi:10.1108/k-05-2020-0261

Cited by 6 publications

(4 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The new retail firm's early delivery can promote demand. The time that the new retail firm transported the fresh products to the offline store through the offline channel (the time that the customer to the offline store was ignored) or to the end customer through the online channel was denoted by T. The following multiplicative functions [46] were employed to express the dual-channel market demand:…”

Section: Constructing and Solving The Modelmentioning

confidence: 99%

Research on Incentive and Coordination Strategy of Fresh Products’ Supply Chain with Delivery Time under New Retail

Zhang

Ding

2023

Systems

View full text Add to dashboard Cite

The new retail focuses on the high integration between online and offline channels. The main problems faced by the development of the new retail are the interest balance of all decision subjects, the pricing strategy, and the coordination of online and offline channels. This paper considers the effect of the new retail firms’ delivery time and establishes a two-part tariff contract to study the decision-making and coordination of the new retail fresh products supply chain. This paper constructs cooperative and non-cooperative models and employs the cooperative model as the benchmark case to realize the coordination. It is found that when the delivery time has little effect on the market demand, the offline store often should pay more fixed charges to the new retail firm. With the increased impact of delivery time on market demand, the fixed charges paid by the offline store become smaller. Under the coordination decision model, the offline store pays fixed charges to compensate for the new retail firm’s early delivery costs, but its interests still increase compared with the decentralized decision model. This study models the time-dependent demand for fresh products and proposes an incentive mechanism to coordinate the new retail fresh products’ supply chain; further, it demonstrates that the prices can be significantly decreased with the designed contract, and all the supply chain members can benefit from Pareto improvement.

show abstract

Section: Constructing and Solving The Modelmentioning

confidence: 99%

Research on Incentive and Coordination Strategy of Fresh Products’ Supply Chain with Delivery Time under New Retail

Zhang

Ding

2023

Systems

View full text Add to dashboard Cite

show abstract

“…Further, in [22], the influence of continuous deterioration in an inventory model to assess just-in-time agreement is analyzed. Recently, in [23], the pricing strategy for a perishable inventory with a non-instantaneous rate, where the demand is selling price and freshness dependent investigated. Under price-advertisement-dependent demand, in [10], an inventory strategy for perishable inventory with a non-instantaneous rate with trade credit policy and time value of money is developed.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

et al. 2022

View full text Add to dashboard Cite

Trade credit is generally used by businesses to obtain external funds. This article demonstrates an inventory system from the retailer’s point of view in which (1) the influence of trade credit on expanding small businesses and their consumers is the focus of this research, and (2) the retailer’s on-hand inventory follows the non-instantaneous deterioration. (3) To maximize profit, the demand is disclosed, which is based on not just the sales price, but also on cumulative demand, which indicates saturation and diffusion. (4) The product’s initial price and the permitted discount rate at the time of deterioration are considered to be time-dependent functions of the sales price. In the absence of deterioration, the item is sold at a constant rate, and whenever deterioration occurs, the sales price is assumed to be an exponential function of the discount variable. The main aim is to optimize the total profit of the retailer in terms of cycle time and sales price. The traditional algorithm of optimization is used to address the optimization problem. Finally, the theoretical results are validated by solving three numerical illustrations and conducting a sensitivity analysis of the main factors resulting from the following managerial implications: (1) credit period provides the maximum profit margin of any financing method, and (2) an increase in the initial rate of demand raises sales price while increasing overall profit significantly.

show abstract

“…Online e-commerce platforms provide sellers and consumers with convenient and inexpensive means to facilitate information sharing and docking trade-offs (Wu et al, 2020). The platform economy and e-commerce have become the fastest growing and most dynamic economic sectors in China and the world (Xu et al, 2021). Market competition is becoming increasingly fierce, and consumers' purchasing choices are closely related to product brands.…”

Section: Research Background and Motivationsmentioning

confidence: 99%

The Multimodal Emotion Information Analysis of E-Commerce Online Pricing in Electronic Word of Mouth

Chen

Zhong

Feng

et al. 2022

Journal of Global Information Management

View full text Add to dashboard Cite

E-commerce has developed rapidly, and product promotion refers to how e-commerce promotes consumers' consumption activities. The demand and computational complexity in the decision-making process are urgent problems to be solved to optimize dynamic pricing decisions of the e-commerce product lines. Therefore, a Q-learning algorithm model based on the neural network is proposed on the premise of multimodal emotion information recognition and analysis, and the dynamic pricing problem of the product line is studied. The results show that a multi-modal fusion model is established through the multi-modal fusion of speech emotion recognition and image emotion recognition to classify consumers' emotions. Then, they are used as auxiliary materials for understanding and analyzing the market demand. The long short-term memory (LSTM) classifier performs excellent image feature extraction. The accuracy rate is 3.92%-6.74% higher than that of other similar classifiers, and the accuracy rate of the image single-feature optimal model is 9.32% higher than that of the speech single-feature model.

show abstract

Optimal pricing model for non-instantaneous deterioration items with price and freshness sensitive demand under the e-commerce environment in China

Cited by 6 publications

References 30 publications

Research on Incentive and Coordination Strategy of Fresh Products’ Supply Chain with Delivery Time under New Retail

Research on Incentive and Coordination Strategy of Fresh Products’ Supply Chain with Delivery Time under New Retail

Optimal Pricing Policies with an Allowable Discount for Perishable Items under Time-Dependent Sales Price and Trade Credit

The Multimodal Emotion Information Analysis of E-Commerce Online Pricing in Electronic Word of Mouth

Contact Info

Product

Resources

About