IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2016i1p12-d86009.html
   My bibliography  Save this article

The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation

Author

Listed:
  • Yujie Xiao

    (Jiangsu Key Laboratory of Modern Logistics, School of Marketing and Logistic Management, Nanjing University of Finance and Economics, Nanjing 210046, China
    Business School, Nanjing University, Nanjing 210093, China)

  • Shuai Yang

    (School of Economics and Management, Changshu Institute of Technology, Changshu 215500, China)

Abstract

Managing perishable food in a retail store is quite difficult because of the product’s short lifetime and deterioration. Many elements, such as price, shelf space allocation, and quality, which can affect the consumption rate, should be taken into account when the perishable food retail chain is designed. The modern tracking technologies provide good opportunities to improve the management of the perishable food retail chain. In this research, we develop a mathematical model for a single-item retail chain and determine the pricing strategy, shelf space allocation, and order quantity to maximize the retailer’s total profit with the application of tracking technologies. Then the single-item retail chain is extended into a multi-item one with a shelf space capacity and a simple algorithm is developed to find the optimal allocation of shelf space among these items. Finally, numerical experiments and real-life examples are conducted to illustrate the proposed models.

Suggested Citation

  • Yujie Xiao & Shuai Yang, 2016. "The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation," Sustainability, MDPI, vol. 9(1), pages 1-11, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2016:i:1:p:12-:d:86009
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/1/12/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/1/12/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patrik Mouron & Christian Willersinn & Sabrina Möbius & Jens Lansche, 2016. "Environmental Profile of the Swiss Supply Chain for French Fries: Effects of Food Loss Reduction, Loss Treatments and Process Modifications," Sustainability, MDPI, vol. 8(12), pages 1-20, November.
    2. Zanoni, Simone & Zavanella, Lucio, 2012. "Chilled or frozen? Decision strategies for sustainable food supply chains," International Journal of Production Economics, Elsevier, vol. 140(2), pages 731-736.
    3. repec:dau:papers:123456789/1757 is not listed on IDEAS
    4. Pierre Desmet & Valérie Renaudin, 1998. "Estimation of Product Category Sales Responsiveness to Allocated Shelf Space," Post-Print halshs-00143451, HAL.
    5. Mark Ferguson & Michael E. Ketzenberg, 2006. "Information Sharing to Improve Retail Product Freshness of Perishables," Production and Operations Management, Production and Operations Management Society, vol. 15(1), pages 57-73, March.
    6. 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.
    7. Yunzeng Wang & Yigal Gerchak, 2001. "Supply Chain Coordination when Demand Is Shelf-Space Dependent," Manufacturing & Service Operations Management, INFORMS, vol. 3(1), pages 82-87, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Linh N. K. Duong & Lincoln C. Wood & William Y. C. Wang, 2018. "Effects of Consumer Demand, Product Lifetime, and Substitution Ratio on Perishable Inventory Management," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    2. Bedru B. Balana & Crystal N. Aghadi & Adebayo I. Ogunniyi, 2022. "Improving livelihoods through postharvest loss management: evidence from Nigeria," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 249-265, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shuai Yang & Yujie Xiao & Yong-Hong Kuo, 2017. "The Supply Chain Design for Perishable Food with Stochastic Demand," Sustainability, MDPI, vol. 9(7), pages 1-12, July.
    2. Shuai Yang & Yujie Xiao & Yan Zheng & Yan Liu, 2017. "The Green Supply Chain Design and Marketing Strategy for Perishable Food Based on Temperature Control," Sustainability, MDPI, vol. 9(9), pages 1-8, August.
    3. Lijing Zhu, 2017. "Economic Analysis of a Traceability System for a Two-Level Perishable Food Supply Chain," Sustainability, MDPI, vol. 9(5), pages 1-16, April.
    4. Guowei Liu & Jianxiong Zhang & Wansheng Tang, 2015. "Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand," Annals of Operations Research, Springer, vol. 226(1), pages 397-416, March.
    5. Santos, Maria João & Martins, Sara & Amorim, Pedro & Almada-Lobo, Bernardo, 2022. "On the impact of adjusting the minimum life on receipt (MLOR) criterion in food supply chains," Omega, Elsevier, vol. 112(C).
    6. 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.
    7. Youhua (Frank) Chen & Ye Lu & Minghui Xu, 2012. "Optimal inventory control policy for periodic‐review inventory systems with inventory‐level‐dependent demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(6), pages 430-440, September.
    8. Saha, S. & Goyal, S.K., 2015. "Supply chain coordination contracts with inventory level and retail price dependent demand," International Journal of Production Economics, Elsevier, vol. 161(C), pages 140-152.
    9. Ming Luo & GuoHua Zhou & Hao Xu, 2022. "RETRACTED ARTICLE: Three-tier supply chain on temperature control for fresh agricultural products using new differential game model under two decision-making situations," Operations Management Research, Springer, vol. 15(3), pages 1028-1047, December.
    10. Jing He & Ting Yang, 2022. "Differential Game Analysis of Emission Reduction and Preservation in the Tertiary Food Supply Chain under Different Government Subsidy Models," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    11. Thalis P. V. Zis & Harilaos N. Psaraftis, 2022. "Impacts of short-term measures to decarbonize maritime transport on perishable cargoes," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 602-629, September.
    12. Dong Li & Xiaojun Wang, 2017. "Dynamic supply chain decisions based on networked sensor data: an application in the chilled food retail chain," International Journal of Production Research, Taylor & Francis Journals, vol. 55(17), pages 5127-5141, September.
    13. Els Breugelmans & Katia Campo & Els Gijsbrechts, 2007. "Shelf sequence and proximity effects on online grocery choices," Marketing Letters, Springer, vol. 18(1), pages 117-133, June.
    14. Ketzenberg, M.E. & Bloemhof-Ruwaard, J.M., 2009. "The Value of RFID Technology Enabled Information to Manage Perishables," ERIM Report Series Research in Management ERS-2009-020-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Wu, Zhengping & Zhai, Xin & Liu, Zhongyi, 2015. "The inventory billboard effect on the lead-time decision," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 45-53.
    16. Noble, Stephanie M. & Lee, Kang Bok & Zaretzki, Russell & Autry, Chad, 2017. "Coupon clipping by impoverished consumers: Linking demographics, basket size, and coupon redemption rates," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 553-571.
    17. Álvaro J. Arnal & Patricia Royo & Gianpiero Pataro & Giovanna Ferrari & Víctor J. Ferreira & Ana M. López-Sabirón & Germán A. Ferreira, 2018. "Implementation of PEF Treatment at Real-Scale Tomatoes Processing Considering LCA Methodology as an Innovation Strategy in the Agri-Food Sector," Sustainability, MDPI, vol. 10(4), pages 1-16, March.
    18. Rahal, Imen & Elloumi, Abdelkarim, 2021. "Inventory management of perishable products : a case of melon in Tunisia," MPRA Paper 118028, University Library of Munich, Germany.
    19. Ketzenberg, Michael & Oliva, Rogelio & Wang, Yimin & Webster, Scott, 2023. "Retailer inventory data sharing in a fresh product supply chain," European Journal of Operational Research, Elsevier, vol. 307(2), pages 680-693.
    20. Janssen, Larissa & Diabat, Ali & Sauer, Jürgen & Herrmann, Frank, 2018. "A stochastic micro-periodic age-based inventory replenishment policy for perishable goods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 445-465.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2016:i:1:p:12-:d:86009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.