Joint strategy of advance-selling and buy-back for seasonal perishable products
DOI:
Author:
Affiliation:

Clc Number:

Fund Project:

  • Article
  • |
  • Figures
  • |
  • Metrics
  • |
  • Reference
  • |
  • Related
  • |
  • Cited by
  • |
  • Materials
  • |
  • Comments
    Abstract:

    As a result of the short sales period andshort life-cycle, the large profit of seasonal perishable products is usually accompanied by great demand uncertainty. Once missing the sales season,their low residual value will bring huge economic losses and resource waste. The advance selling strategy with a discount will encourage consumers to buy in advance. Dealers can also enhance the accuracy of market demand forecast by the amount of pre-order. While enjoying preferential prices,consumers also bear expected value losses as a result of purchasing before seeing the physical product. If the seller adopts the buy-back strategy,the consumers can benefit. The retailer’s profits could be improved by increasing the advance selling price and reducing the order quantity with reasonable buy-back costs. Considering the strategic consumers,this paper compared the joint strategy of advance selling and buy-back with the solo advance selling strategy. It established profit models and obtained the optimal advance selling prices and order quantities. It also found that when the unit order cost is high or the buy-back price is low,the joint strategy can bring the retailer more profits. Under the joint strategy,the optimal advance selling price is higher and the optimal order quantity is less. These conclusions can help retailers in making marketing strategies.

    Reference
    Related
    Cited by
Get Citation
Share
Article Metrics
  • Abstract:
  • PDF:
  • HTML:
  • Cited by:
History
  • Received:
  • Revised:
  • Adopted:
  • Online: April 22,2018
  • Published:
You are the th visitor Address:Room 908, Building A, 25th Teaching Building, Tianjin University, 92 Weijin Road, Nankai District, Tianjin Postcode:300072
Telephone:022-27403197 Email:jmsc@tju.edu.cn