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Algorithms 2018, 11(11), 186;

Pricing Strategies of Logistics Distribution Services for Perishable Commodities

School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China
China Waterborne Transport Research Institute, Beijing 100088, China
Author to whom correspondence should be addressed.
Received: 22 October 2018 / Revised: 12 November 2018 / Accepted: 14 November 2018 / Published: 17 November 2018
(This article belongs to the Special Issue Algorithms for Decision Making)
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The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings. View Full-Text
Keywords: perishable goods; value loss; pricing strategy; logistics distribution perishable goods; value loss; pricing strategy; logistics distribution

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Li, T.; Chen, Y.; Li, T. Pricing Strategies of Logistics Distribution Services for Perishable Commodities. Algorithms 2018, 11, 186.

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