Abstract
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.
Highlights
Perishable goods are goods that are rotting, decomposing, and damaged during the process of logistics distribution
We only focus on the issue of pricing logistics distribution services for perishable goods, and other issues will not be covered in this paper
This paper studies the impact of different delivery times on different pricing models, and gives some advice to logistics service providers for pricing logistics distribution services
Summary
Perishable goods are goods that are rotting, decomposing, and damaged during the process of logistics distribution. Studied the pricing and efficiency of the secondary logistics service supply chain based on the principle of profit maximization under the condition of uncertain demand. Established two game theory models to explore the supply chain of fresh produce determined by the pricing and service level of a supplier and a retailer. It can be seen from the above analysis that the second aspect is mainly for pricing logistics services, but perishable goods have certain special characteristics, including the distribution of perishable goods, more factors need to be considered. There are fewer references on the pricing strategy for logistics distribution services of perishable goods and factors related, such as delivery time and service satisfaction. This paper compares and analyzes the characteristics of different pricing models and discusses the impact of them on the profit of logistics service providers, which provide a reference for the choice of pricing model for logistics service providers
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
