Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time

Although the safe consumption of goods such as food products, medicine, and vaccines is related to their freshness, consumers frequently understand less than suppliers about the freshness of goods when they purchase them. Because of this lack of information, apart from sales prices, consumers refer...

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Main Author: Po-Yu Chen
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Journal of Food Quality
Online Access:http://dx.doi.org/10.1155/2017/6967501
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author Po-Yu Chen
author_facet Po-Yu Chen
author_sort Po-Yu Chen
collection DOAJ
description Although the safe consumption of goods such as food products, medicine, and vaccines is related to their freshness, consumers frequently understand less than suppliers about the freshness of goods when they purchase them. Because of this lack of information, apart from sales prices, consumers refer only to the manufacturing and expiration dates when deciding whether to purchase and how many of these goods to buy. If dealers could determine the sales price at each point in time and customers’ intention to buy goods of varying freshness, then dealers could set an optimal inventory cycle and allocate a weekly sales price for each point in time, thereby maximizing the profit per unit time. Therefore, in this study, an economic order quality model was established to enable discussion of the optimal control of sales prices. The technique for identifying the optimal solution for the model was determined, the characteristics of the optimal solution were demonstrated, and the implications of the solution’s sensitivity analysis were explained.
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spelling doaj-art-d6d5cef40ff04b988eba632e266993122025-08-20T03:19:49ZengWileyJournal of Food Quality0146-94281745-45572017-01-01201710.1155/2017/69675016967501Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in TimePo-Yu Chen0Department of Advertising and Strategic Marketing, Ming Chuan University, No. 250 Zhong Shan N. Rd., Sec. 5, Taipei, TaiwanAlthough the safe consumption of goods such as food products, medicine, and vaccines is related to their freshness, consumers frequently understand less than suppliers about the freshness of goods when they purchase them. Because of this lack of information, apart from sales prices, consumers refer only to the manufacturing and expiration dates when deciding whether to purchase and how many of these goods to buy. If dealers could determine the sales price at each point in time and customers’ intention to buy goods of varying freshness, then dealers could set an optimal inventory cycle and allocate a weekly sales price for each point in time, thereby maximizing the profit per unit time. Therefore, in this study, an economic order quality model was established to enable discussion of the optimal control of sales prices. The technique for identifying the optimal solution for the model was determined, the characteristics of the optimal solution were demonstrated, and the implications of the solution’s sensitivity analysis were explained.http://dx.doi.org/10.1155/2017/6967501
spellingShingle Po-Yu Chen
Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
Journal of Food Quality
title Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
title_full Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
title_fullStr Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
title_full_unstemmed Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
title_short Economic Order Quality Model for Determining the Sales Prices of Fresh Goods at Various Points in Time
title_sort economic order quality model for determining the sales prices of fresh goods at various points in time
url http://dx.doi.org/10.1155/2017/6967501
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