Research on Vegetable Product Pricing and Replenishment Decision Based on Linear Regression and ARIMA Model

Yu Chen; Ziyan Hua; Yiwa Fu

doi:10.54097/wwegcv88

Authors

Yu Chen
Ziyan Hua
Yiwa Fu

DOI:

https://doi.org/10.54097/wwegcv88

Keywords:

ARIMA Model, Linear Regression, Vegetable Restocking.

Abstract

With the rise of fresh food supermarkets, how to automatically price and restock vegetable products has become a major challenge for many businesses. To develop a restocking and pricing plan for vegetable products in supermarkets, we first calculate the cost profit margin, standardize the profit margin and total sales volume data, and then incorporate vegetable categories into a linear regression model using dummy variables, We found a significant negative correlation between profit margin and total sales volume, and obtained the product pricing strategy using the linear equation of profit margin. After conducting ADF testing, the number of autoregressive terms and the average number of sliding terms of the Time Series (ARIMA) model were determined based on the test set results, and the model was used to predict the total daily replenishment of each vegetable category in the next week. This study has reference value for vegetable restocking and pricing decisions.

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