Impact of shipping policies on ordering and pricing strategies in dual‐channel perishable food retailing

Abstract The perishable food retail sector faces significant challenges, including product quality deterioration, intense competition, and the complexities of dual‐channel (online/offline) operations. This study examines a retailer selling perishable food through both channels, where customer purchasing behavior is influenced by price and dynamic quality degradation. Using a consumer utility model that accounts for perishability, we analyze the retailer's optimal order quantities and price discounts under different shipping policies. Our key findings reveal how shipping fees, consumer heterogeneity, and promotion periods interact to shape pricing strategies. Under conditions of low shipping fees, configurations of discounts become more complex due to the trade‐offs between shipping costs and sales revenue. Without safety stock, discounts are steeper in low‐fee scenarios, while high‐fee conditions favor smaller discounts. Market dynamics determine the effectiveness of discounts and shipping policies in reducing waste and boosting profits. A “win–win” scenario emerges under low shipping fees, where environmental and economic goals align. Conversely, high shipping fees create a conflict between these objectives. Additionally, strategic safety stock allocation and shipping policy adjustments can simultaneously enhance market share and profitability. By aligning operational decisions with sustainability goals, this study contributes to reducing food waste and improving supply chain resilience.

Authors

Institutions

Publication Details

Journal
International Transactions in Operational Research
Published
2025-08-12
DOI
https://doi.org/10.1111/itor.70090
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Impact of shipping policies on ordering and pricing strategies in dual‐channel perishable food retailing

Yanan Yu, Dong Li, Yong He, Xiaotong Guo
International Transactions in Operational Research
Supply Chain and Inventory Management
article

Impact of shipping policies on ordering and pricing strategies in dual‐channel perishable food retailing

Yanan Yu, Dong Li, Yong He, Xiaotong Guo
article en

Abstract

Abstract The perishable food retail sector faces significant challenges, including product quality deterioration, intense competition, and the complexities of dual‐channel (online/offline) operations. This study examines a retailer selling perishable food through both channels, where customer purchasing behavior is influenced by price and dynamic quality degradation. Using a consumer utility model that accounts for perishability, we analyze the retailer's optimal order quantities and price discounts under different shipping policies. Our key findings reveal how shipping fees, consumer heterogeneity, and promotion periods interact to shape pricing strategies. Under conditions of low shipping fees, configurations of discounts become more complex due to the trade‐offs between shipping costs and sales revenue. Without safety stock, discounts are steeper in low‐fee scenarios, while high‐fee conditions favor smaller discounts. Market dynamics determine the effectiveness of discounts and shipping policies in reducing waste and boosting profits. A “win–win” scenario emerges under low shipping fees, where environmental and economic goals align. Conversely, high shipping fees create a conflict between these objectives. Additionally, strategic safety stock allocation and shipping policy adjustments can simultaneously enhance market share and profitability. By aligning operational decisions with sustainability goals, this study contributes to reducing food waste and improving supply chain resilience.

International Transactions in Operational Research
University of Liverpool (GB), Nanjing University of Posts and Telecommunications (CN), Southeast University (CN)
National Natural Science Foundation of China, Natural Science Foundation of Jiangsu Province
Openalex Percentile: Top 65%
Supply Chain and Inventory Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.