The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation
Managing perishable food in a retail store is quite difficult because of the product’s short lifetime and deterioration. Many elements, such as price, shelf space allocation, and quality, which can affect the consumption rate, should be taken into account when the perishable food retail chain is des...
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Online Access: | http://www.mdpi.com/2071-1050/9/1/12 |
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doaj-0e31af8f39dd4f16a0330662ba1bf8a22020-11-24T21:40:50ZengMDPI AGSustainability2071-10502016-12-01911210.3390/su9010012su9010012The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space AllocationYujie Xiao0Shuai Yang1Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistic Management, Nanjing University of Finance and Economics, Nanjing 210046, ChinaSchool of Economics and Management, Changshu Institute of Technology, Changshu 215500, ChinaManaging perishable food in a retail store is quite difficult because of the product’s short lifetime and deterioration. Many elements, such as price, shelf space allocation, and quality, which can affect the consumption rate, should be taken into account when the perishable food retail chain is designed. The modern tracking technologies provide good opportunities to improve the management of the perishable food retail chain. In this research, we develop a mathematical model for a single-item retail chain and determine the pricing strategy, shelf space allocation, and order quantity to maximize the retailer’s total profit with the application of tracking technologies. Then the single-item retail chain is extended into a multi-item one with a shelf space capacity and a simple algorithm is developed to find the optimal allocation of shelf space among these items. Finally, numerical experiments and real-life examples are conducted to illustrate the proposed models.http://www.mdpi.com/2071-1050/9/1/12food retail chainshelf space allocationperishable foodpricing strategyquality deterioration |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Yujie Xiao Shuai Yang |
spellingShingle |
Yujie Xiao Shuai Yang The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation Sustainability food retail chain shelf space allocation perishable food pricing strategy quality deterioration |
author_facet |
Yujie Xiao Shuai Yang |
author_sort |
Yujie Xiao |
title |
The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation |
title_short |
The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation |
title_full |
The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation |
title_fullStr |
The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation |
title_full_unstemmed |
The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation |
title_sort |
retail chain design for perishable food: the case of price strategy and shelf space allocation |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2016-12-01 |
description |
Managing perishable food in a retail store is quite difficult because of the product’s short lifetime and deterioration. Many elements, such as price, shelf space allocation, and quality, which can affect the consumption rate, should be taken into account when the perishable food retail chain is designed. The modern tracking technologies provide good opportunities to improve the management of the perishable food retail chain. In this research, we develop a mathematical model for a single-item retail chain and determine the pricing strategy, shelf space allocation, and order quantity to maximize the retailer’s total profit with the application of tracking technologies. Then the single-item retail chain is extended into a multi-item one with a shelf space capacity and a simple algorithm is developed to find the optimal allocation of shelf space among these items. Finally, numerical experiments and real-life examples are conducted to illustrate the proposed models. |
topic |
food retail chain shelf space allocation perishable food pricing strategy quality deterioration |
url |
http://www.mdpi.com/2071-1050/9/1/12 |
work_keys_str_mv |
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