Developing an Optimized Pricing Mechanism for Super Fresh Products Considering Product Shelf-Life

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, ‎Iran.

2 Professor, School of Industrial Engineering, Iran University of Science and Technology, Tehran, ‎Iran.

3 Associate Professor, Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, ‎Iran.

4 Associate Professor, Department of Industrial Engineering, Faculty of Engineering, KHATAM University, Tehran, Iran.

Abstract

This study aims to develop a mathematical model for the pricing of fresh products in a fruit supply chain network. Stakeholders in this issue include fruit suppliers, primary fruit fields and markets, retailers, end customers, processing industries, and disposal centers. Fruits and vegetables are considered super fresh products because their color and taste change over time, leading to spoilage. This article focuses on pricing this category of products considering freshness-dependent demand and pricing and models the flow among suppliers, retailers, customers, processing industries, and disposals. This study examines the pricing of fresh products supplied by suppliers, transported, sold by retailers, and eventually delivered to customers and processing industries and disposals, and considers multiple periods. The developed model uses mixed integer linear programming (MILP) to maximize total profit, including transportation, wholesale, and inspection costs. A numerical example is provided to validate the proposed model and offer managerial insights to the relevant industry. The results indicate that appropriate pricing contributes to overall profit and increased sales. Lastly, sensitivity analysis demonstrates the relationship between total profit, freshness, and product sales. A total profit model for retailers is considered to optimize pricing based on optimal cost parameters.

Keywords

Main Subjects

References

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Advances in Industrial Engineering
Volume 59, Issue 1
June 2025
Pages 79-98

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