<p>The competitive arena of retail processes has made it more consumer preference-centric in recent times. Significant issues, such as retail price, green investment, visible inventory, and advertisement frequency, impacting consumption patterns are addressed herein. Precisely, this paper analyzes the optimality of the pricing, greening, inventory management, and advertisement strategies for the sustainable retail process that exists due to the deteriorating products under a partially backlogged shortage enabled setting. Mathematically, the demand function includes a logistic response to advertising, linear contributions from green initiatives and inventory level, and a negative power of price to reflect price sensitivity. The major objective of this proposed model is to find an optimum average profit for five fundamental decision variables, namely, selling price, green investment, promotion frequency, active retail cycle, and total decision cycle in an integrated approach. Concavity analysis through the Hessian matrix precedes the numerical simulation using Mathematica 13.1, which provides the concavity of the average profit around the critical point. It is perceived from the numerical simulation that coordinated strategies regarding pricing, advertisement frequency, green investment, preservation technology, and replenishment policy are fundamentally important for balancing retailer profit goals and sustainability.</p>

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An Integrated Approach for Optimal Pricing, Greening, Inventory Management and Advertisement Strategies for Consumer-Focused Eco-Retailing of Deteriorating Products

  • Musaraf Hossain,
  • Mostafijur Rahaman,
  • Shariful Alam

摘要

The competitive arena of retail processes has made it more consumer preference-centric in recent times. Significant issues, such as retail price, green investment, visible inventory, and advertisement frequency, impacting consumption patterns are addressed herein. Precisely, this paper analyzes the optimality of the pricing, greening, inventory management, and advertisement strategies for the sustainable retail process that exists due to the deteriorating products under a partially backlogged shortage enabled setting. Mathematically, the demand function includes a logistic response to advertising, linear contributions from green initiatives and inventory level, and a negative power of price to reflect price sensitivity. The major objective of this proposed model is to find an optimum average profit for five fundamental decision variables, namely, selling price, green investment, promotion frequency, active retail cycle, and total decision cycle in an integrated approach. Concavity analysis through the Hessian matrix precedes the numerical simulation using Mathematica 13.1, which provides the concavity of the average profit around the critical point. It is perceived from the numerical simulation that coordinated strategies regarding pricing, advertisement frequency, green investment, preservation technology, and replenishment policy are fundamentally important for balancing retailer profit goals and sustainability.