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

Authors

Mehmet Önal, Işık UniversityFollow
Arda Yenipazarli, Georgia Southern UniversityFollow
O. Erhun Kundakcioglu, Ozyegin UniversityFollow

Document Type

Article

Publication Date

12-2016

Publication Title

Computers & Industrial Engineering

DOI

10.1016/j.cie.2016.11.002

ISSN

0360-8352

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.

Recommended Citation

Önal, Mehmet, Arda Yenipazarli, O. Erhun Kundakcioglu. 2016. "A Mathematical Model for Perishable Products with Price-and Displayed-Stock-Dependent Demand." Computers & Industrial Engineering, 102: 246-258. doi: 10.1016/j.cie.2016.11.002 source: https://www.sciencedirect.com/science/article/pii/S0360835216304181?via%3Dihub
https://digitalcommons.georgiasouthern.edu/logistics-supply-facpubs/132