Which retail strategy for shelf life products can satisfy consumers under game policy?

Neha Saxena, Mitali Sarkar and Biswajit Sarkar

Journal of Retailing and Consumer Services, 2024, vol. 76, issue C

Abstract: Under the game competition, it is very difficult to maintain all retail strategies for shelf life fast-moving consumer (FMCG) goods products with the random demand. Due to random demand, a truncated distribution is, a conditional distribution, generated by constraining the domain of another probability distribution. This study focuses on retail management in the service sector of a manufacturer and retailer. The demand rate and ordering quantity are probabilistic and follow a doubly truncated exponential distribution with a short shelf life, but it can be extended using specific preservative measures. The model considers shelf life as a decision variable and addresses products with an extendable shelf life. The mathematical representation of the model is provided to determine the optimal policy for production and replenishment in a Nash equilibrium decentralized game. The concept is demonstrated using mushrooms as an example of fast-moving consumer goods, and results suggest that the retailer can increase their profits by extending the product's shelf life by 4.2 days beyond its original shelf life which is 2 days.

Keywords: Retail management; Game policy; Service; Deteriorating items; Supply chain management (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:76:y:2024:i:c:s0969698923003466

DOI: 10.1016/j.jretconser.2023.103595

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