Joint dynamic pricing and freshness-keeping effort strategy for perishable products with price-, freshness-, and stock-dependent demand

In this paper, we formulate a joint dynamic pricing and freshness-keeping effort strategy for perishable products in finite horizon. Based on the nature of products, paper considers product demand influenced by selling price, freshness stock level. Since level decreases with time, assume that deteriorates exponentially. Besides, is introduced to reduce deterioration rate freshness. Our purpose determine optimal maximize profits. To solve problem, Pontryagin's maximum principle applied. We present numerical example support theoretical results propose sensitivity analysis main parameters. end, some managerial guidelines are also provided. When cost high or effect low, not adopt decision. However, if small significant, adopting best. addition, managers can gain more profits expanding market size restraining inventory decay rate.