Study On The Pricing And Quantity Decision Of Online Retailers Based On EOQ Model

With the rapid development of e-commerce in recent years in our country,online shopping,as the main supplement form of offline retailers,obtain a wide range of business concerns.Retailers have started to build their own online sales platform,and some set up an independent online platform for the expansion of network channels by using their own resources,and some settled through the B2 C platform for online sales,but no matter which form,offline physical warehouse inventory is always needed.Take JingDong as an example,because of its stock inventory,it can be seen as another channel of selling products.After consumers in the JingDong selfshop making an order,the products can be directly delivered to consumers from warehouse.In the case of online sales relying on offline inventory,products have a lot of inventory costs,so,for retailers,not only the optimal decision on the price of the product,but also the need for online sales of the number of product types to make the best decisions to maximize their own profits.In this paper,the MNL model is used to depict the consumer's choice behavior on the network and the EOQ model is used to describe the inventory cost of the product.The aim of the retailer's profit maximization is to optimize the product price and the numbers of product types.Specifically,in the analysis of product pricing,the article solves the upper bound conditions that the optimal pricing strictly exists,and finds the sufficient condition that the parameters such as the number of product types and the delivery rate have regular influence on the optimal pricing.Also,this paper analyzes the influence of the delivery rate on the total profit.In the decision of the number of product types,the article proves the existence of the global optimal finite solution and analyzes the relationship between the inventory cost and the optimal product type.In the joint decision of product price and product types,the paper focuses on the impact of inventory cost factors on optimal decision,and puts forward reasonable suggestions to retailers from express delivery cost and inventory managementFinally,the research topic of this paper is summarized and forecasted.