Author:
Xu Weihua,Zhou Shujun,Zhao Ketong,Shi Yixuan,Bingzhen Sun
Abstract
Purpose
The purpose of this paper is to focus on determining the optimal sales price for non-instantaneous deterioration items according to consideration of freshness and demand.
Design/methodology/approach
In this model, the authors have described the demand function which is dependent on price as well time. The products that the deterioration is considered as non-instantaneous have a determinate shelf life, and their demand rate will decrease over time after the beginning of the selling period. This paper depicts that the total profit of non-instantaneous deterioration items using the dynamic pricing strategy is higher than that using fixed pricing strategy.
Findings
Finally, to illustrate and validate the model, the authors have used some numerical examples. A new freshness function and the model to study pricing policy are developed as well applied to solve managerial decision problems.
Originality/value
This paper complements the lack of the existing theoretical research of pricing for non-instantaneous deterioration items under an e-commerce environment. A new freshness function and the model to study pricing policy are developed as well applied to solve managerial decision problems.
Subject
Computer Science (miscellaneous),Social Sciences (miscellaneous),Theoretical Computer Science,Control and Systems Engineering,Engineering (miscellaneous)
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