Research On Category Pricing Optimization In Retailing Supermarket

Category management is a retailing management technology, in which the total range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories. An important facet of Category Management is the shift in relationship between retailer and supplier: instead of the traditional adversarial relationship, the relationship moves to one of collaboration, exchange of information and data and joint business building. Category pricing is an important part of category management. In the article, the author attempt to develop a category pricing optimization model that can be used for retailing category pricing problem. The remainder of the paper is organized as follows:Firstly, the background and importance of this research is expounded, and then we introduced the concepts and history of category management and category pricing, summarized the existing literatures and the structure of this dissertation and our research method.Secondly, based on the Mixed Logit Model, we developed the demand model; based on the EOQ Model we developed the cost model for category pricing problem.Thirdly, based on the demand model and cost model a single category pricing optimization model has been established that can be used for single product category pricing problem, and an algorithm and an application for solving this problem is proposed.Fourthly, base on the single category pricing optimization model, we developed a multi-category pricing model that can be used for multiple product category pricing problem, and an algorithm and an application for solving this problem is proposed.Fifthly, the models and method studied in this paper are applied to a data set, to describe the use of our model.