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On the promotion of Fresh Products.doc
On the promotion of Fresh Products
【Abstract】In this paper, the joint strategy of the single cycle fresh product about inventory and promotion is considered, and the order promotion joint decision model is established. By the initial procurement, promotion starting time, discount sales promotion efforts, iterative method of best strategy is obtained and retailers get the maximum benefits. Through numerical simulation example, the paper analyzes the effects on the objective function and decisions which are exerted by the changes of parameters of deteriorating rate. The results show that the smaller deterioration rate, the later promotion starting time; The results of this paper have reference value for the storage and promotion of fresh products.
【Key words】Fresh products; Promotion; Price discount; Deterioration; Promotion starting time
0 Introduction
In recent years, the requirements of fresh products are increasing. So the inventory management of fresh products is more important. Meanwhile some scholars launched studies on the inventory and sales of fresh products. The preliminary research results are as follows: Wee[1] construct an inventory model under some conditions that product’s life is subjected to double parameter weibull distribution. Wee and yu[2] found out how quantity discount affected the inventory strategies of retailers. Monahan[3] studied quantity discount problem from the perspective of suppliers. Tersine[4] studied the temporary price discount and presented OTOS(one time only sale), then Tersine[5] also proposed a generalized EOQ model which was given temporary price discounts;
Currently in the study of inventory model on price discount decision, the demand rate is mostly assumed to be price-related functions without considering the effects of freshness on demand. Therefore, this paper introduces the concept of freshness to portray the freshness of products and to research the impact of freshness inventory and sales strategies.
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