A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand
Computers & Industrial Engineering
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.
Önal, Mehmet, Arda Yenipazarli, O. Erhun Kundakcioglu.
"A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand."
Computers & Industrial Engineering, 102: 246-258.