主管:中国科学院
主办:中国优选法统筹法与经济数学研究会
   中国科学院科技战略咨询研究院
Articles

Dynamic Pricing Strategy for Perishable Food Considering Donation Behavior

Expand
  • School of Business, Central South University, Changsha 410083, China

Received date: 2017-11-10

  Revised date: 2018-07-02

  Online published: 2019-03-25

Abstract

Waste caused by inappropriate quality control and excessive inventories is a major challenge for perishable food management. The influence of donation behavior on the price decision of food companies is studied and multiple pricing strategies are considered, including single pricing strategy, twice pricing strategy and multi-level discount pricing strategy, thus the impacts of different pricing strategies on corporate profits are compared. Through numerical analysis, the result shows that:(i) The donation behavior can enhance the company's income and achieve better effects under the multi-level discount pricing strategy. However, the less discount times, the better the single pricing strategy for the company considering the donation. (ii) The initial quality, deterioration rate, discounting time point, donating time point and the tax return ratio of food are important factors affecting the pricing policy. If the quality discrepancy is larger, the profit of the company will decrease under the multi-level discount policy, while there appears an ascending trend when the donation is considered. When the deterioration rate is higher, the profit will be decreased under the single pricing strategy considering donation, but it will not affect much under the multi-level discount pricing strategy. When the discount time is closer to the donation time point, the company gains more profit under the multi-level discount pricing strategy considering donation; and when the donation time point is closer to the shelf life, the price strategy considering donation behavior will be superior to that without considering donation. In addition, the study also shows that the increase of the tax return ratio is not necessarily conducive to the pricing strategy under donation. (iii) The discount time has a significant impact on the profit of the company. It is found that the initial pricing and the profit of the company with donation considered is higher than those without consideration.

Cite this article

HU Han-li, CAO Yu, LI Qing-song . Dynamic Pricing Strategy for Perishable Food Considering Donation Behavior[J]. Chinese Journal of Management Science, 2019 , 27(1) : 99 -109 . DOI: 10.16381/j.cnki.issn1003-207x.2019.01.010

References

[1] Ferguson M, Ketzenberg M E. Information sharing to improve retail product freshness of perishables [J]. Production and Operations Management, 2006, 15(1): 57-73.

[2] Karkkainen M. Increasing efficiency in the supply chain for short shelf life goods using RFID tagging [J]. International Journal of Retail & Distribution Management, 2003, 31(10): 529-536.

[3] Teller C, Holweg C, Reiner G, et al. Retail store operations and food waste [J]. Journal of Cleaner Production, 2018, 185: 981-997.

[4] Eriksson M, Lindgren S, Osowski C P. Mapping of food waste quantification methodologies in the food services of Swedish municipalities [J]. Resources, Conservation & Recycling, 2018, 137: 191-199.

[5] Ghare P M. A model for exponentially decaying inventory [J]. Journal of Industrial Engineering, 1963, 14: 238-243.

[6] Chiu H N. An approximation to the continuous review inventory model with perishable items and lead times [J]. European Journal of Operational Research, 1995, 87(1): 93-108.

[7] Ouyang L Y, Teng J T, Goyal S K, et al. An economic order quantity model for deteriorating items with partially permissible delay in payments linked to order quantity [J]. European Journal of Operational Research, 2009, 194(2): 418-431.

[8] Taleizadeh A A, Nematollahi M. An inventory control problem for deteriorating items with back-ordering and financial considerations [J]. Applied Mathematical Modelling, 2014, 38(1): 93-109.

[9] 陈军, 但斌, 张旭梅. 多级价格折扣下基于损耗控制的生鲜农产品EOQ模型[J]. 系统工程理论与实践, 2009, 29(7): 44-54.

[10] 魏广明, 秦娟娟, 王坤, 等. 可控变质率下基于商业信用的易逝品库存优化模型[J]. 中国管理科学, 2018, 25(12): 9-16.

[11] Goyal S K, Giri B C. Recent trends in modelling of deteriorating inventory [J]. European Journal of Operational Research, 2001, 134(1): 1-16.

[12] Karaesmen I Z, Scheller-Wolf A, Deniz B. Managing perishable and aging inventories: Review and future research directions[M]//Planning Production and Inventories in the Extended Enterprise, Boston, MA: Springer, 2011: 393-436.

[13] Herbon A, Levner E, Cheng T C E. Perishable inventory management with dynamic pricing using time-temperature indicators linked to automatic detecting devices [J]. International Journal of Production Economics, 2014, 147: 605-613.

[14] Van Donselaar K H, Peters J, de Jong A, et al. Analysis and forecasting of demand during promotions for perishable items [J]. International Journal of Production Economics, 2016, 172: 65-75.

[15] Wang Xiaojun, Li Dong. A dynamic product quality evaluation based pricing model for perishable food supply chains [J]. Omega, 2012, 40(6): 906-917.

[16] 官振中, 卜祥智. 可变价格向下替代易逝性产品最优订货策略[J]. 系统工程理论与实践, 2007, 27(6): 93-99.

[17] Avinadav T, Herbon A, Spiegel U. Optimal inventory policy for a perishable item with demand function sensitive to price and time [J]. International Journal of Production Economics, 2013, 144(2): 497-506.

[18] Chew E P, Lee C, Liu Rujing, et al. Optimal dynamic pricing and ordering decisions for perishable products [J]. International Journal of Production Economics, 2014, 157: 39-48.

[19] Duan Yongrui, Cao Yu, Huo Jiazhen. Optimal pricing, production, and inventory for deteriorating items under demand uncertainty: The finite horizon case [J]. Applied Mathematical Modelling, 2018, 58: 331-348.

[20] Chen T H. Optimizing pricing, replenishment and rework decision for imperfect and deteriorating items in a manufacturer-retailer channel [J]. International Journal of Production Economics, 2017, 183: 539-550.

[21] Sainathan A. Pricing and replenishment of competing perishable product variants under dynamic demand substitution [J]. Production and Operations Management, 2013, 22(5): 1157-1181.

[22] Tiwari S, Jaggi C K, Gupta M. Optimal pricing and lot-sizing policy for supply chain system with deteriorating items under limited storage capacity [J]. International Journal of Production Economics, 2018, 200: 16-36.

[23] 但斌, 陈军, 吴庆. 基于多级折扣价格的易逝品订货策略研究[J]. 中国管理科学, 2006, 14(3): 38-44.

[24] 李琳, 范体军. 零售商主导下生鲜农产品供应链的定价策略对比研究[J]. 中国管理科学, 2015, 23(12): 113-123.

[25] Porter M E, Kramer M R. The competitive advantage of corporate philanthropy [J]. Harvard Business Review, 2002, 80(12): 56-68.

[26] Brammer S, Millington A. Does it pay to be different? An analysis of the relationship between corporate social and financial performance [J]. Strategic Management Journal, 2008, 29(12): 1325-1343.

[27] 张建君. 竞争—承诺—服从: 中国企业慈善捐款的动机[J]. 管理世界, 2013, (9): 118-129.

[28] Godfrey P C. The relationship between corporate philanthropy and shareholder wealth: A risk management perspective [J]. Academy of Management Review, 2005, 30(4): 777-798.

[29] Wang Heli, Qian Cuili. Corporate philanthropy and corporate financial performance: The roles of stakeholder response and political access [J]. Academy of Management Journal, 2011, 54(6): 1159-1181.

[30] Mossion J. Aspects of rational insurance purchasing [J]. Journal of Political Economy, 1968, 76(4): 553-568.

[31] 戴亦一, 潘越, 冯舒. 中国企业的慈善捐赠是一种"政治献金"吗?—来自市委书记更替的证据[J]. 经济研究, 2014, (2): 74-86.

[32] Mohr L A, Webb D J, Harris K E. Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior [J]. Journal of Consumer Affairs, 2001, 35(1): 45-72.

[33] Dean D H. Consumer perception of corporate donations effects of company reputation for social responsibility and type of donation [J]. Journal of Advertising, 2003, 32(4): 91-102.

[34] De E B, Jacxsens L, Goubert H, et al. Ensuring food safety in food donations: Case study of the Belgian donation/acceptation chain [J]. Food Research International, 2017, 100: 137-149.
Outlines

/