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Keywords

fresh food, freshness-keeping effort, pricing, replenishment strategy

Abstract

Based on the operation mode of fresh E-commerce,a pricing and inventory problem of fresh products whose demand is affected by the double factors of price and effort level is explored in this paper,and the need to stimulate customers' demand for fresh products by investing effort cost is also studied.Moreover,the balance between increasing pricing and maximizing profits is included into this paper.The problem of how to determine the best replenishment cycle for fresh E-commerce under the condition of not being out of stock is also considered.It is proved that there is an optimal replenishment strategy under the condition of effort level and price determination. On this basis,an iterative algorithm is proposed to search for the optimal solutions.Finally,numerical examples are designed to conduct sensitivity analysis for some major parameters.The conclusions show that the profit of fresh E-commerce increases with the improvement of efforts,but the level of effort is not as high as possible.When the profit of fresh E-commerce is not enough to cover the cost of effort,the profit of the system begins to decrease.In addition,the last mile distribution cost of fresh E-commerce has a greater impact on the optimal profit of the system.Therefore,fresh E-commerce companies should seek a balance between effort level and system profit,control the distribution cost per unit of product,and thus maximize the average profit of the system.

DOI

10.16315/j.stm.2020.03.006

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