Optimizing Advertising and Pricing for Perishable Inventory with Freshness-Related Demand in a Hybrid Partial Prepayment and Trade Credit Supply Chain

Abstract

This paper investigates an inventory model addressing non-instantaneous deteriorating items with expiration concerns, incorporating a hybrid payment approach. The demand factors of this study are price-sensitive demand, product freshness considerations, and advertising frequency impact, which are critical elements in contemporary supply chain challenges. The proposed model investigates multiple prepayments and delayed payments to bolster business operations during financial emergencies. This study aims to enhance business flexibility, and the model reflects real-world complexities by introducing a time-dependent holding cost and accounting for partial backlogged shortages. The establishment of convexity ensures efficient optimization and numerical examples clearly illustrate how the proposed strategies influence overall enterprise profitability. Furthermore, the utilization of MATLAB for graphical representation enhances result availability and understanding. Sensitivity analysis enriches decision-making by providing important managerial insights during the recovery phase. This research contributes a strong foundation for inventory optimization that can adapt to changing post-pandemic economic conditions.