A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand

Mehmet Önal; Arda Yenipazarli; O. Erhun Kundakcioglu

doi:10.1016/j.cie.2016.11.002

A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand

Mehmet Önal, Arda Yenipazarli, O. Erhun Kundakcioglu

Logistics & Supply Chain Management

Research output: Contribution to journal › Article › peer-review

29 Scopus citations

Abstract

We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer's profit under shelf-space and backroom storage capacity constraints. We assume that the demand rate of a product is a function of the selling prices and the displayed stock levels of all the products in the assortment. We propose a Tabu Search based heuristic method to solve this complex problem.

Original language	American English
Journal	Computers & Industrial Engineering
Volume	102
DOIs	https://doi.org/10.1016/j.cie.2016.11.002
State	Published - Dec 1 2016

Disciplines

Operations and Supply Chain Management
Business Administration, Management, and Operations

Keywords

Inventory management
Optimization
Portfolio
Pricing
Shelf space allocation

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10.1016/j.cie.2016.11.002License: Unspecified

https://doi.org/10.1016/j.cie.2016.11.002

Cite this

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abstract = "We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer's profit under shelf-space and backroom storage capacity constraints. We assume that the demand rate of a product is a function of the selling prices and the displayed stock levels of all the products in the assortment. We propose a Tabu Search based heuristic method to solve this complex problem.",

keywords = "Inventory management, Optimization, Portfolio, Pricing, Shelf space allocation",

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AU - Önal, Mehmet

AU - Yenipazarli, Arda

AU - Kundakcioglu, O. Erhun

PY - 2016/12/1

Y1 - 2016/12/1

N2 - We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer's profit under shelf-space and backroom storage capacity constraints. We assume that the demand rate of a product is a function of the selling prices and the displayed stock levels of all the products in the assortment. We propose a Tabu Search based heuristic method to solve this complex problem.

AB - We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer's profit under shelf-space and backroom storage capacity constraints. We assume that the demand rate of a product is a function of the selling prices and the displayed stock levels of all the products in the assortment. We propose a Tabu Search based heuristic method to solve this complex problem.

KW - Inventory management

KW - Optimization

KW - Portfolio

KW - Pricing

KW - Shelf space allocation

UR - https://digitalcommons.georgiasouthern.edu/logistics-supply-facpubs/132

UR - https://doi.org/10.1016/j.cie.2016.11.002

U2 - 10.1016/j.cie.2016.11.002

DO - 10.1016/j.cie.2016.11.002

M3 - Article

VL - 102

JO - Computers & Industrial Engineering

JF - Computers & Industrial Engineering

ER -

A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand

Abstract

Disciplines

Keywords

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