Research On Dynamic Pricing Models For Two Perishable Products Under The Network Environment

Perishable goods are prone to deterioration, and have a short life cycle. But the rapiddevelopment of science and technology, and intense competition among enterprises, makingproducts replacement fast. Although the product without any quality problems, but alsodemonstrated perishable, so increasing the scope of perishable goods. Perishable goods withperishable, non-storage properties and characteristics of demand uncertainty, this makingmany enterprises are facing enormous difficulties in managing perishable product.The key to solving this problem is to develop a reasonable price during sales period, inorder to sell out all products, and achieve the goal of maximizing corporate earnings. Thetraditional cost-oriented pricing method, can not accurately respond to changes of demand.Pricing of perishable product should be flexibly adjusted according to the fluctuations ofdemand. Dynamic pricing is the most effective pricing method of perishable products.In addition, The Internet has made the dissemination of information easier., so it greatlyreduce the menu cost from dynamic pricing. These provide an effective environment for theimplementation of dynamic pricing for perishable goods. So, research on of dynamic pricingfor perishable goods under the network environment has important practical significance. Sohow companies can implement dynamic pricing strategies in the sales period? And how canprice adjust in the sales period? These are the core issues discussed in this article.Currently, perishable goods are divided into two categories: The first is in the narrowsense that perishable is an inherent characteristics of the product, Such as service products.Another is in a broad sense that the fast replacement of product lead it has perishablecharacteristic. These are manufacturing products. So in this paper, we are to study thedynamic pricing tactics of these two perishable goods.First, this paper summarizes a number of related literaturer, and analysis of the researchresults of dynamic pricing of the Service Products and perishable goods in manufacturing.Pointed the shortage in the past study, and then indicate the key issues of our study.Then, We assuming that the two vendors both sell their products only through Online channels, Create a dynamic pricing model to maximization the two vendors’ revenue in twodifferent backgrounds. Finally, analysis and comparison of the difference between two typesof perishable goods on the model established. By solving and analysis of the model, we resultthat:1) both the two kinds of perishable goods can increase the income of the two companiesby implement of dynamic pricing.2) Exist an optimal number of price adjustments that canmaximum the vendors’ revenue in the sales period.3) The adjust times has an impact on orderquantity and corporate’s profit.4) the price of the previous stage will affect the price of nextstage.Finally, a numerical example draw that the price for perishable goods of manufacturingdecrease with the reduce of remaining sell time; But the price of service products decreasesfirst and then increases.