The Dynamic Pricing Of Perishable Product When Its Demand Is Influenced By Technology Investment

The quality of perishable product occupies the important position in the sales process,the decay of perishable product's quality directly influences the demand of consumers,Therefore,the use of technical means for quality preservation has become more and more popular among retailers.Technology investment can largely reduce the decay of the perishable product's quality,so as to attract more consumers and allow the retailers to gain more profits.But in the face of high technology investment costs and more profits,retailers can't master a proper balance point to make the most profit with the smallest technology investment cost.Therefore,many scholars pay attention to this research.In this paper,we first study the pricing model of perishable product,and on the basis of previous studies,we conducted in-depth study to find a pricing model that most suitable of perishable product.In this paper,we study the technology investment of perishable product by retailers,and assuming that consumer demand is affected by its quality and price,then we build a pricing model that quality of perishable product is affected by the technology investment.At the same time,considering the decay of the perishable product's quality,this paper argues that the method of dynamic pricing is more suitable for the perishable product,and we according different situation of the decay rate of perishable product's quality to build model,and the retailer's profit function was established based on the Hamilton function,then we use the optimal control theory to conclude that the retailer's optimal strategy under different parameters.Finally in the inventory management,we take inventory decay rate as variable factor into the model,and through the comparison of the model decision-making,we get the inventory loss of profit that retailers ignore the inventory decay rate.The results showed that the perishable product's technology investment should be combined with the dynamic pricing methods to make decision.The decay rate of perishable product's quality is uncertain,at the same time,the inventory decay rate is also not be ignored,or it will aggravate the burden of inventory.Only considering so many factors can make the perishable product sales to obtain the biggest profit.