Replenishment Strategy Model Based on Cost-plus Pricing

Abstract

To formulate the commodity pricing replenishment strategy to meet the short-term profit demand of merchants, we established a pricing replenishment prediction model based on the sales-cost-plus pricing correlation. It integrates four-dimensional profit factors, taking the maximization of total profit as the core guidance and considering the objective impact of date. With ARIMA and random forest algorithm, the commodity cost and sales volume are predicted from the perspective of sales cyclical fluctuation. Finally, we constructed the optimal pricing linear function based on the goal programming problem. The optimal pricing replenishment strategy can be determined by adjusting the commodity pricing. The calculation results show that the prediction accuracy of the model is higher than 0.71, which can provide merchants with pricing and replenishment strategies with high reliability.