Joint Quality Investment and Inventory Decisions for Perishable Items with Reference Quality Effect under the O2O Environment

Joint Authors

Hou, Yumei
Li, Yuan

Source

Journal of Control Science and Engineering

Issue

Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-10, 10 p.

Publisher

Hindawi Publishing Corporation

Publication Date

2019-08-01

Country of Publication

Egypt

No. of Pages

10

Main Subjects

Electronic engineering
Information Technology and Computer Science

Abstract EN

Reference quality, as a benchmark against which the purchase quality of a product is judged, has an important impact on consumers’ purchase decision, especially perishable items.

Thus, how to determine an appropriate quality investment and ordering strategies for perishable items to maximize retailers’ profit is an essential task.

A joint dynamic quality investment and inventory replenishment problem for perishable items with consideration of reference quality effect is investigated, where the retailer sells its products using a combination of the offline and online stores, and the sales function is sensitive to products’ quality and consumers’ reference quality.

The optimal control model is established to maximize the retailer’s total profit by making a joint quality and inventory strategy.

The continuous time dynamic optimal quality investment and inventory replenishment strategies with reference quality effect are obtained by Pontryagin’s maximum principle.

Numerical experiments are accounted for the key system parameters on the optimal strategies.

American Psychological Association (APA)

Li, Yuan& Hou, Yumei. 2019. Joint Quality Investment and Inventory Decisions for Perishable Items with Reference Quality Effect under the O2O Environment. Journal of Control Science and Engineering،Vol. 2019, no. 2019, pp.1-10.
https://search.emarefa.net/detail/BIM-1172571

Modern Language Association (MLA)

Li, Yuan& Hou, Yumei. Joint Quality Investment and Inventory Decisions for Perishable Items with Reference Quality Effect under the O2O Environment. Journal of Control Science and Engineering No. 2019 (2019), pp.1-10.
https://search.emarefa.net/detail/BIM-1172571

American Medical Association (AMA)

Li, Yuan& Hou, Yumei. Joint Quality Investment and Inventory Decisions for Perishable Items with Reference Quality Effect under the O2O Environment. Journal of Control Science and Engineering. 2019. Vol. 2019, no. 2019, pp.1-10.
https://search.emarefa.net/detail/BIM-1172571

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references

Record ID

BIM-1172571