A mathematical model for optimizing pricing-inventory, and advertising frequency decisions with a multivariate demand function and a time-dependent holding-cost function

IF 3 Q2 OPERATIONS RESEARCH & MANAGEMENT SCIENCE

International Journal of Management Science and Engineering Management Pub Date : 2022-11-22 DOI:10.1080/17509653.2022.2125452

Behnaz Gharakhani, Mahsa Ghandehari, A. Ansari

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引用次数: 2

Abstract

ABSTRACT This article investigates inventory replenishment, advertising, and pricing decisions for perishable products with fixed expiration dates. Specifically, the problem is modelled using mixed-integer nonlinear programming to maximize the retailer’s total profit on an infinite planning horizon. Several assumptions are made to formulate the problem: i) the demand is considered a multivariate function of freshness, selling price, displayed inventory level, and advertisement frequency; ii) the holding cost of inventory increases linearly as the product ages; iii) the ending inventory is not necessarily zero. A search algorithm is proposed to solve this problem. The impact of each parameter on the optimal solution is investigated using sensitivity analysis. The advertising frequency determined via this model is an optimal compromise between advertising costs and yield. This model can be applied to reduce perishable food waste and meet the rising demand for fresh food.

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多元需求函数和含时持有成本函数优化库存定价和广告频率决策的数学模型

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来源期刊

International Journal of Management Science and Engineering Management OPERATIONS RESEARCH & MANAGEMENT SCIENCE-

CiteScore

8.50

自引率

33.30%

发文量

期刊介绍： International Journal of Management Science and Engineering Management (IJMSEM) is a peer-reviewed quarterly journal that provides an international forum for researchers and practitioners of management science and engineering management. The journal focuses on identifying problems in the field, and using innovative management theories and new management methods to provide solutions. IJMSEM is committed to providing a platform for researchers and practitioners of management science and engineering management to share experiences and communicate ideas. Articles published in IJMSEM contain fresh information and approaches. They provide key information that will contribute to new scientific inquiries and improve competency, efficiency, and productivity in the field. IJMSEM focuses on the following: 1. identifying Management Science problems in engineering; 2. using management theory and methods to solve above problems innovatively and effectively; 3. developing new management theory and method to the newly emerged management issues in engineering; IJMSEM prefers papers with practical background, clear problem description, understandable physical and mathematical model, physical model with practical significance and theoretical framework, operable algorithm and successful practical applications. IJMSEM also takes into account management papers of original contributions in one or several aspects of these elements.