Title

A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand

Document Type

Article

Publication Date

12-2016

Publication Title

Computers & Industrial Engineering

DOI

10.1016/j.cie.2016.11.002

Abstract

We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer’s profit under shelf-space and backroom storage capacity constraints. We assume that the demand rate of a product is a function of the selling prices and the displayed stock levels of all the products in the assortment. We propose a Tabu Search based heuristic method to solve this complex problem.