Journal of Shanghai Jiaotong University ›› 2014, Vol. 48 ›› Issue (02): 306-311.

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Pricing and Ordering Strategies for Fresh Products with Different Quality Levels

TIAN Zhongweia,DONG Mingb
  

  1. (a.SinoUS Global Logistics Institute, Shanghai Jiaotong University, Shanghai 200030; b.Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai 200052, China)
  • Received:2013-05-12

Abstract:

Fresh products, which may deteriorate during the distribution process, are usually divided into different quality levels. The retailer faces two different selling strategies, i.e., separate selling strategy and mixed selling strategy. This paper studied the optimal pricing and ordering strategies for a retailer of fresh products under these two different selling strategies. Specifically, a two-period model was considered in this paper. Through numerical analysis, it explored the effects of market demand volatility, product quality difference and freshness keeping ratio on the retailer’s optimal decisions and profit under different selling strategies.

Key words: fresh product, quality level, pricing, substitutability

CLC Number: