Research ArticleOpen AccessGoogle Scholar indexed
Ordering and Pricing Strategies for Fresh Products with Multiple Quality Levels Considering Consumer Utility
School of Management, Jinan University, Guangzhou, China
- 1 School of Management, Jinan University, Guangzhou, China
American Journal of Operations Research·Volume 05 (2015)·Pages 192–198·Published 16 April 2015·DOI10.4236/ajor.2015.53015
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Abstract
In this paper, considering a scenario in which there are two quality levels of fresh products and introduction of consumer utility function, we studied the optimal ordering and pricing strategies under certain quantity. Our results showed that, facing the two quality levels of fresh products, retailers would not benefit from sales of lower quality of fresh products with the deterministic demand. In the pursuit of profit maximization, the initial order quantity is smaller than the potential demand for market.
KeywordsFresh ProductsConsumer UtilityMultiple Quality LevelPricing and Ordering
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