Dynamic Pricing and Ordering Decision for the Perishable Food of the Supermarket Using RFID Technology

Dynamic Pricing and Ordering Decision for the Perishable Food of the Supermarket Using RFID Technology

  Product quality of perishable food is significantly affected by the environment. Technological approaches for tracking and tracing such products have attracted increasing attentions in both research and practice. This paper studies how supermarket can maximize profits of selling perishable food through price adjustment based on real-ime product quality and values. This can be achieved by tracing the value of the perishable food based on an automatic product identification technology padio Frequency Identification (RFID). With the support of the RFID, an aptimizaiton model can be developed to enable product tracking and tracing. The analysis of the model shows promising benefits of applying a dynamic pricing policy and obtains the optimal ordering decision in the respect of deterministic demand function.