Pricing and replenioring decision model of vegetable commodities based on historical data

In modern retail, vegetables, as daily consumer goods, have strong seasonality and demand fluctuations, and at the same time have a short shelf life and are easy to wear out. Retailers need to optimize replenishment and pricing strategies to ensure adequate supply and control inventory depletion. How to maximize the profit of the supermarket on this basis has become an important problem that the retail industry needs to solve. We analyzed the relationship between the total sales volume and cost-plus pricing of each vegetable category, established the ARIMA model and the revenue maximization model, and gave the daily replying volume and pricing strategy of each vegetable category in the next week (July 1-7, 2023). According to the available varieties in the past week, under the condition that the order quantity of each item is in the range of 27 to 33, and the order quantity of each item is more than 2.5 kg, the linear programming is used to optimize the decision under the constraints to maximize the total revenue, and the replying quantity and pricing strategy of each item on July 1 are given. By optimizing pricing and replying strategies, retailers can better respond to market changes, improve their market competitiveness and profitability, and promote the development of intelligent retail industry, which has important academic significance and practical value.

Publication Details

Journal
Agricultural & Forestry Economics and Management
Published
2025-01-01
DOI
https://doi.org/10.23977/agrfem.2025.080107
Primary Topic
Global Trade and Competitiveness
Type
article
Field-Weighted Citation Impact
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article

Pricing and replenioring decision model of vegetable commodities based on historical data

Agricultural & Forestry Economics and Management
Global Trade and Competitiveness
article

Pricing and replenioring decision model of vegetable commodities based on historical data

article en

Abstract

In modern retail, vegetables, as daily consumer goods, have strong seasonality and demand fluctuations, and at the same time have a short shelf life and are easy to wear out. Retailers need to optimize replenishment and pricing strategies to ensure adequate supply and control inventory depletion. How to maximize the profit of the supermarket on this basis has become an important problem that the retail industry needs to solve. We analyzed the relationship between the total sales volume and cost-plus pricing of each vegetable category, established the ARIMA model and the revenue maximization model, and gave the daily replying volume and pricing strategy of each vegetable category in the next week (July 1-7, 2023). According to the available varieties in the past week, under the condition that the order quantity of each item is in the range of 27 to 33, and the order quantity of each item is more than 2.5 kg, the linear programming is used to optimize the decision under the constraints to maximize the total revenue, and the replying quantity and pricing strategy of each item on July 1 are given. By optimizing pricing and replying strategies, retailers can better respond to market changes, improve their market competitiveness and profitability, and promote the development of intelligent retail industry, which has important academic significance and practical value.

Agricultural & Forestry Economics and ManagementVol. 8(1)
Zero hunger
Openalex Percentile: Top 92%
Global Trade and Competitiveness
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