Abstract
Recently fresh fruit sector is grown not only due to increasing of demand that spirited by healthy lifestyle but also requirement of quality food should be eaten daily. Its complexity make many research considered fruit in certain supply chain, called as Fruit Supply Chain (FSC). In FSC, customers tend to purchase products with a longer remaining lifetime and avoid the ones which give aging signal. Customer willingness to pay decreases once the product start to be deteriorated, which may cause slower demand for aging fruits. Consequently, retailers should enable discounted price for aging fruits products to retain or improve demand rate. Main purpose of this research is explaining how to maximize supply chain profit by applying dynamic pricing. A set of mathematical model is optimized on this research. It addresses dynamic pricing for FSC players to achieve better profitability. The result proves that dynamic pricing is urgent to be done which is signaled by increment of FSC Profit. FSC players can separate selling period into three periods, which are forward buying period, normal price period, and markdown price period as implementation of this scheme.
Highlights
According to Soto-silva et al [1], recently, fresh fruit sector is grown due to increasing of demand that spirited by healthy lifestyle and requirement of quality food should be eaten daily
In order to avoid unsold product due to became deteriorated, dynamic pricing could become solution to push demand in several selling period, which are forward buying, normal price, and markdown price period compare to single price for all selling period, that is already proved by optimization
Optimization parameters has their own effect on Fruit Supply Chain (FSC) profit
Summary
According to Soto-silva et al [1], recently, fresh fruit sector is grown due to increasing of demand that spirited by healthy lifestyle and requirement of quality food should be eaten daily. Other factors such as globalization, competitor and customized products, make fresh fruits sector tends to be specialized and integrated vertically to become more competitive and dynamics. In this way, organizing fresh fruit under various related circumstances later called as Fruit Supply Chain (FSC). Authors previous work [6] considered pricing in a specific structure or supply chain namely dual channel supply chain In contorast to those aforementioned works, this research accommodates three period pricing on three echelon for fruit product handling. Common question will come up for proposed method whether dynamic pricing can help fruit supply chain players achieve better supply chain profit
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