A simulation on impacts of a dynamic pricing model for perishable foods on retail operations productivity and customer behaviours

This paper developed a dynamic pricing strategy for perishable foods based on prior optimal and dynamic pricing models for perishable foods. The proposed strategy is expected to transform consumer purchasing patterns in a more strategic way with advanced tracking solutions, and to significantly curtail waste and increase retail service operations productivity. Based on information from interviews and surveys, a simulation was conducted to investigate impacts of the proposed strategy on retailer productivity and customer behaviours.