A mathematical model for perishable products with price- and displayed-stock-dependent demand
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CitationÖnal, M., Yenipazarli, A., & Kundakcioglu, O. E. (2016). A mathematical model for perishable products with price- and displayed-stock-dependent demand. Computers and Industrial Engineering, 102, 246-258. doi:10.1016/j.cie.2016.11.002
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.