Optimal Price and Freshness-Keeping Effort Level for a Reseller with Product Freshness and Quantity Deteriorating Simultaneously

This paper introduces the freshness rate factor decays exponentially as time goes on to model a market demand function depends on sales price and freshness rate. At the same time, considering the dual influences exerted from the way freshness-keeping effort level of the reseller to the arrival rate and freshness, we've discussed the optimal price and freshness-keeping effort level on the basis of metamorphic inventory control theoretical model, and analyzed the influence of related parameters on the result of strategy.