Shipment Timing Support System Modeling for Stored Apples in Korea

Abstract

Although, in academic field, various industries has its own retail price management system from the customers’ point of view, the report of application of wholesale price management in practice, especially in agricultural industry, has been relatively rare from producers’ perspectives. The researcher aims to try to full this gap by developing a shipment timing support system for stored apples based on the transaction quantity and the wholesale price information announced by Seoul Agricultural & Marine Products Corporation at on-line. The Shipment Timing Support System(STSS) consists of the dynamic price response function for each product, the price expectation effect, product line effect, substitutes price effect, events effect, apples’ life cycle, the demand curve for apples and cost function. The resulting fluctuation of the expected sales revenue for every product they store in warehouse will be provided by the application on smart phone. The system will helpful for farmers and wholesalers to decide the time for shipment from warehouses to wholesale markets, and to increase the opportunities to produce more money in farmers pockets.