Bundle Pricing Decisions for Fresh Products with Quality Deterioration
How to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2018-01-01
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| Series: | Journal of Food Quality |
| Online Access: | http://dx.doi.org/10.1155/2018/1595807 |
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| _version_ | 1832567605247868928 |
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| author | Yan Fang Yiping Jiang Xingxing Han |
| author_facet | Yan Fang Yiping Jiang Xingxing Han |
| author_sort | Yan Fang |
| collection | DOAJ |
| description | How to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle pricing decisions for homogeneous fresh products with quality deterioration. The value of fresh products with quality deterioration is approximated as an exponential function based on which customer’s reservation prices are calculated. A nonlinear mixed integer programming model is used to formulate the bundle pricing problem for fresh products. By adding auxiliary decision variables, this model is converted into a mixed integer linear program. Numerical experiments and sensitive analysis are conducted to provide managerial insights for bundling fresh products with quality deterioration. |
| format | Article |
| id | doaj-art-a850880318c3404191571b94c8b6aae8 |
| institution | Kabale University |
| issn | 0146-9428 1745-4557 |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Food Quality |
| spelling | doaj-art-a850880318c3404191571b94c8b6aae82025-02-03T01:00:59ZengWileyJournal of Food Quality0146-94281745-45572018-01-01201810.1155/2018/15958071595807Bundle Pricing Decisions for Fresh Products with Quality DeteriorationYan Fang0Yiping Jiang1Xingxing Han2School of Economics and Management, Southeast University, Nanjing, Jiangsu 211189, ChinaDepartment of Management Engineering, Nanjing Agricultural University, Nanjing, Jiangsu 210031, ChinaSchool of Business, Dalian University of Technology, Panjin, Liaoning 124221, ChinaHow to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle pricing decisions for homogeneous fresh products with quality deterioration. The value of fresh products with quality deterioration is approximated as an exponential function based on which customer’s reservation prices are calculated. A nonlinear mixed integer programming model is used to formulate the bundle pricing problem for fresh products. By adding auxiliary decision variables, this model is converted into a mixed integer linear program. Numerical experiments and sensitive analysis are conducted to provide managerial insights for bundling fresh products with quality deterioration.http://dx.doi.org/10.1155/2018/1595807 |
| spellingShingle | Yan Fang Yiping Jiang Xingxing Han Bundle Pricing Decisions for Fresh Products with Quality Deterioration Journal of Food Quality |
| title | Bundle Pricing Decisions for Fresh Products with Quality Deterioration |
| title_full | Bundle Pricing Decisions for Fresh Products with Quality Deterioration |
| title_fullStr | Bundle Pricing Decisions for Fresh Products with Quality Deterioration |
| title_full_unstemmed | Bundle Pricing Decisions for Fresh Products with Quality Deterioration |
| title_short | Bundle Pricing Decisions for Fresh Products with Quality Deterioration |
| title_sort | bundle pricing decisions for fresh products with quality deterioration |
| url | http://dx.doi.org/10.1155/2018/1595807 |
| work_keys_str_mv | AT yanfang bundlepricingdecisionsforfreshproductswithqualitydeterioration AT yipingjiang bundlepricingdecisionsforfreshproductswithqualitydeterioration AT xingxinghan bundlepricingdecisionsforfreshproductswithqualitydeterioration |