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A dynamic product quality evaluation based pricing model for perishable food supply chains


  • Wang, Xiaojun
  • Li, Dong


Waste stemmed from inappropriate quality control and excessive inventories is a major challenge for perishable food management in grocery retail chains. Improvement of visibility and traceability in food supply chains facilitated by tracking and tracing technologies has great potential to improve operations efficiency. This research aims to reduce food spoilage waste and maximise food retailer's profit through a pricing approach based on dynamically identified food shelf life. The proposed model is evaluated through different pricing policies to exploit the benefits from utilising accurate product shelf life information captured through innovated tracking and monitoring technologies. Numerical analysis is conducted in an illustrative case study.

Suggested Citation

  • Wang, Xiaojun & Li, Dong, 2012. "A dynamic product quality evaluation based pricing model for perishable food supply chains," Omega, Elsevier, vol. 40(6), pages 906-917.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:6:p:906-917 DOI: 10.1016/

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    References listed on IDEAS

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    2. Kim, Taebok & Glock, Christoph H. & Kwon, Yongjang, 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Omega, Elsevier, vol. 43(C), pages 30-40.
    3. Chen, Chialin & Zhang, Jun & Delaurentis, Teresa, 2014. "Quality control in food supply chain management: An analytical model and case study of the adulterated milk incident in China," International Journal of Production Economics, Elsevier, vol. 152(C), pages 188-199.
    4. Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
    5. Seifbarghy, Mehdi & Nouhi, Khashayar & Mahmoudi, Amin, 2015. "Contract design in a supply chain considering price and quality dependent demand with customer segmentation," International Journal of Production Economics, Elsevier, vol. 167(C), pages 108-118.
    6. Zhang, Jianxiong & Liu, Guowei & Zhang, Qiao & Bai, Zhenyu, 2015. "Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract," Omega, Elsevier, vol. 56(C), pages 37-49.
    7. repec:gam:jsusta:v:9:y:2017:i:8:p:1330-:d:106320 is not listed on IDEAS
    8. Qin, Yiyan & Wang, Jianjun & Wei, Caimin, 2014. "Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously," International Journal of Production Economics, Elsevier, vol. 152(C), pages 42-48.
    9. Chen, Xu & Wang, Xiaojun, 2015. "Free or bundled: Channel selection decisions under different power structures," Omega, Elsevier, vol. 53(C), pages 11-20.
    10. repec:gam:jsusta:v:9:y:2017:i:5:p:682-:d:96764 is not listed on IDEAS
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    12. Jena, Sarat Kumar & Sarmah, S.P., 2016. "Price and service co-opetiton under uncertain demand and condition of used items in a remanufacturing system," International Journal of Production Economics, Elsevier, vol. 173(C), pages 1-21.
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    14. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.
    15. Yujie Xiao & Shuai Yang, 2016. "The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-11, December.
    16. Tromp, Seth-Oscar & Haijema, René & Rijgersberg, Hajo & van der Vorst, Jack G.A.J., 2016. "A systematic approach to preventing chilled-food waste at the retail outlet," International Journal of Production Economics, Elsevier, vol. 182(C), pages 508-518.
    17. Dye, Chung-Yuan, 2013. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model," Omega, Elsevier, vol. 41(5), pages 872-880.
    18. Rezapour, Shabnam & Hassani, Ashkan & Farahani, Reza Zanjirani, 2015. "Concurrent design of product family and supply chain network considering quality and price," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 18-35.
    19. Dulebenets, Maxim A. & Ozguven, Eren Erman, 2017. "Vessel scheduling in liner shipping: Modeling transport of perishable assets," International Journal of Production Economics, Elsevier, vol. 184(C), pages 141-156.
    20. Kouki, Chaaben & Jouini, Oualid, 2015. "On the effect of lifetime variability on the performance of inventory systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 23-34.
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