A retailer of a perishable item that has a life of 3 months is in a dilemma.

A retailer of a perishable item that has a life of 3 months is in a dilemma. The forecast for the three months (which is a function of the price charged) is expected to be 2500 – p1, 2500 -1.2 p2 and 2500 – 1.55 p3 respectively. If the purchase price of the item is Rs 200 and if the retailer wants to charge the same price in each of the three months, what price (optimal) should he charge, how much should he order and what is the expected profit? Excel output to be provided.

If he were to follow dynamic pricing, how can you get the prices to be charged in the three months? Do you foresee any advantage in following this?

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