Pricing for Fresh Food with Different Quality Levels in Supply Chain

摘要

It is more popular for consumers to choose and buy fresh food, and the consumer's valuation will be affected by its quality level due to short shelf life. This paper studies optimal pricing and order quantity decisions for each party in a two echelon supply chain consists of one manufacturer and two retailers and investigates the influence of fresh food's quality level on the optimal strategies. In our model, the factors, such as storage costs, production costs and operation cost, etc. , were taken into account. By analyzing, we proved that the optimal policies are exists under stochastic demands for each party and the retailers' optimal order quantity will decrease monotonically with the wholesale price determined by the manufacturer. And subsequent numerical examples verified our conclusions.