A New Hybrid Model for Dynamic Pricing Strategies of Perishable Products


Tekin P., EROL R.

7th International Conference on Innovative Computing Technology (INTECH), Luton, İngiltere, 16 - 18 Ağustos 2017, ss.85-89 identifier identifier

  • Cilt numarası:
  • Doi Numarası: 10.1109/intech.2017.8102439
  • Basıldığı Şehir: Luton
  • Basıldığı Ülke: İngiltere
  • Sayfa Sayıları: ss.85-89

Özet

The aim of this paper is to mitigation of spoilage rates of perishable products by applying dynamic pricing strategies. The present study is conducted with a deterministic model approach in consideration of various factors, such as interaction between freshness/staleness degrees of different groups of products, elasticity of demand against price and sensitivity of demand towards freshness degree. Different effects of price discounts on customers' attitudes to purchase, contribution of these effects on total profit are found to be significant. Furthermore, in the proposed system, the wastage caused by stale products and recycle products returning to manufacturer for reprocessing, which are two important parameters affecting total profit margin, thus costs of partial returns are significantly reduced furthermore, the renewed dynamic pricing approach treated in the proposed system makes it possible to increase the product sales significantly. The price data is tested via new significant model using PSO and ANN. The results show that the hybrid algorithm gives more profitable and successful results.