Optimal dynamic pricing, preservation technology investment and periodic ordering policies for agricultural products

Lu, Jing; Zhang, Jianxiong; Jia, Xinyun; Zhu, Guowei

doi:10.1051/ro/2018040

Cited by 11 publications

(6 citation statements)

References 41 publications

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“…Herbon and Khmelnitsky [6] developed a dynamic pricing model for perishable products, and showed the optimal replenishment schedule and pricing strategies over time. Lu, et al [7] proposed several dynamic pricing models by considering replenishment cycle length and preservation technology investment. Dye [8] presented a deterministic multi-period setting, and proposed a dynamic pricing model based on sales price and freshness index.…”

Section: Literature Reviewmentioning

confidence: 99%

A Superior Sales Mode for a Two-Echelon Supply Chain of Perishable Products

Bao,

Dai

2024

系统科学与信息学报(英文)

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This paper considers sales mode selection issues for a two-echelon supply chain of perishable products involving a supplier and a retailer. Consumers' purchase desire is assumed to be positive correlation with the freshness of the product. First, the traditional sales mode is examined, in which the supplier and the retailer play a Stackelberg game. We propose a three-layer decision model for this situation, and obtain dynamic pricing strategies and selling cycle length. It is shown that the retailer has little motivation to order many perishable products so as to avoid a long selling cycle length. Second, the commission-charge mode is analyzed, in which the retailer declares its decision first. In this mode, we demonstrate that the perishable product will be on sale during the whole shelf life under a certain condition. The correlation between the sales price of each stage and the remaining shelf-life length is analyzed. Third, the superiority analysis for the two sales modes is conducted. We show the relation between the selling cycle lengths of the two modes. By our analysis, it is shown that both the supplier and the retailer gain more profits when the commission-charge mode is adopted and the commission rate locates in a certain open interval. Finally, a numerical illustration is presented to visualize the discussed models, and some supplements are made for the acquired conclusions by the illustration.

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Section: Literature Reviewmentioning

confidence: 99%

A Superior Sales Mode for a Two-Echelon Supply Chain of Perishable Products

Bao,

Dai

2024

系统科学与信息学报(英文)

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“…Schlosser et al [27] pointed out that frequent price adjustments are crucial for perishable products. Lu et al [23] constructed dynamic pricing models by considering replenishment cycle length, replenishment quantity and preservation technology investment.…”

Section: Related Literaturementioning

confidence: 99%

Competition and cooperation models for dynamic pricing of perishable products in a two-echelon supply chain

Lou

Hou

2021

RAIRO-Oper. Res.

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This paper considers a two-level supply chain involving a supplier and a retailer. The retailer sells perishable products to consumers over a finite time horizon, and the demand is driven by a price-and-utility function. First, we study the noncooperative problem, which is formulated by a Stackelberg model. It is shown that the optimal pricing strategy of the retailer is to reduce a constant amount on the price at the beginning of each stage. Second, we examine the cooperative problem, in which the supplier and the retailer jointly price the product. Maximum selling cycle lengths of the two situations are obtained by analyzing the reasonability of the sales price. We demonstrate that the selling cycle length is extended by cooperation. Moreover, we show that they lower the sales price in the cooperative case so as to maximize the total profit. Meanwhile, an allocation method is provided based on the proportion.

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“…Duan and Liu [30] analyzed the effects of fresh food quality and reference price effects. e preservation technology investment and ordering policy also affect optimal dynamic pricing [31,32]. Transchel [20] studied the inventory and pricing issues of multiquality agricultural products.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and Ordering Strategies for Fresh Food Based on Quality Grading

Xie

Zhou

et al. 2021

Journal of Food Quality

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Fresh food quality grading is the basis of fresh food marketization. On the one hand, it can effectively improve the market efficiency of fresh food and improve the earnings of retailers. On the other hand, it can alleviate the incompleteness of market information and help consumers better identify the quality characteristics of fresh food. To address the issue of quality grading for fresh food, this study constructs a retailer profit model for selling fresh food with two quality grades. Considering the quality level distribution of fresh food and based on the quality selection model, the retailer’s optimal grading, pricing, and ordering of fresh food are studied. Through numerical simulation and sensitivity analysis, some conclusions with managerial implications are drawn. We find that the retailer has the optimal quality grading strategy for fresh food, which is influenced by the minimum quality level and the unit cost of fresh food. Raising the quality standard at the lowest level or reducing the unit cost can help the retailer increase the profits.

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Optimal dynamic pricing, preservation technology investment and periodic ordering policies for agricultural products

Cited by 11 publications

References 41 publications

A Superior Sales Mode for a Two-Echelon Supply Chain of Perishable Products

A Superior Sales Mode for a Two-Echelon Supply Chain of Perishable Products

Competition and cooperation models for dynamic pricing of perishable products in a two-echelon supply chain

Pricing and Ordering Strategies for Fresh Food Based on Quality Grading

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