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Journal of Food Quality
Volume 2018 (2018), Article ID 1595807, 8 pages
https://doi.org/10.1155/2018/1595807
Research Article

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

1School of Economics and Management, Southeast University, Nanjing, Jiangsu 211189, China
2School of Business, Dalian University of Technology, Panjin, Liaoning 124221, China
3Department of Management Engineering, Nanjing Agricultural University, Nanjing, Jiangsu 210031, China

Correspondence should be addressed to Yiping Jiang

Received 29 September 2017; Accepted 6 December 2017; Published 18 January 2018

Academic Editor: Chunming Shi

Copyright © 2018 Yan Fang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

How to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle pricing decisions for homogeneous fresh products with quality deterioration. The value of fresh products with quality deterioration is approximated as an exponential function based on which customer’s reservation prices are calculated. A nonlinear mixed integer programming model is used to formulate the bundle pricing problem for fresh products. By adding auxiliary decision variables, this model is converted into a mixed integer linear program. Numerical experiments and sensitive analysis are conducted to provide managerial insights for bundling fresh products with quality deterioration.