Supply Chain Coordination for Perishable Product with Dynamic Pricing Policy
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Abstract:
Perishable products need to be sold up before a fix time which is usually called product's lifetime.As the salvage of perished products is almost zero,and the demand is uncertainty,retailers usually set the product's price dynamically to influence the demand.When retailer's dynamic pricing policy is considered,we wonder which contracts can realize the supply chain coordination.Three typical contracts-return contract,price discount contract and revenue sharing contract are analyzed.Only revenue sharing contract among the three can realize supply chain coordination under dynamic pricing policy.The extension of price discount policy quantity-price discount policy,can also realize supply chain coordination under dynamic pricing policy.