DYNAMIC PRICING AND PRESERVATION INVESTMENT STRATEGY FOR PERISHABLE PRODUCTS UNDER QUALITY, PRICE AND GREENNESS DEPENDENT DEMAND

The most significant factor to consider for proper operation of a firm is demand, emphasizing the importance of selecting efficient strategies to regulate it. Price has always been the main factor influencing demand, but as people's awareness about environmental issues grows, customers are now keeping an eye on product's level of greenness too in addition to other qualities. The current paper takes into account all these factors for modelling inventory of perishable products which makes preservation technology investment an intrinsic factor as well. The article's major contribution is to propose optimal pricing strategy that can be used in various situations where demand follows the presumed specific pattern. In addition to pricing, other policies like preservation and greening investments are also taken into consideration, and several important managerial insights are derived analytically and with the help of numerical examples. The model's applicability in numerous contexts is also demonstrated.