Evaluation of Inventory Performance for Perishable Products in a Dynamic Pricing Environment

Dynamic pricing means varying price over time. This technique should be used in perishable products along its product life cycle to enhance profit along the supply chain. It is relatively difficult to manage the inventory for perishable products due to uncertainty in demand and short life cycle. In this study, a simulation model is developed using Arena simulation tool for inventory planning of perishable products in a dynamic pricing environment at the retail outlets. Various performance measures are identified to study the system. A case situation is developed to demonstrate the salient features of the concept