Pricing strategies of logistics distribution services for perishable commodities
type: Item
instance of: scholarly article
title: Pricing strategies of logistics distribution services for perishable commodities
zbMATH Open document ID: 1461.90013
author: Tao Li
author: Yan Chen
author: Taoying Li
published in: Algorithms
publication date: 2019-01-21T00:00:00Z
review text: Summary: The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.
Mathematics Subject Classification ID: 90B06
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 7003837
zbMATH Keywords: perishable goods
zbMATH Keywords: value loss
zbMATH Keywords: pricing strategy
zbMATH Keywords: logistics distribution
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.3390/a11110186
OpenAlex ID: W2901714073
DOI: 10.3390/A11110186
description: scientific article; zbMATH DE number 7003837