Dynamic Pricing System for Perishable Inventory Management
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Solution Overview
Problem
Existing barcode systems in supermarkets lack the ability to efficiently attribute expiration dates to multiple products with the same Store Keeping Unit (SKU), leading to manual tagging and increased waste tracking challenges, especially for perishable items.
Innovation Solution
A system utilizing a smartphone or portable device with a barcode scanner, processor, and wireless communication to read and transmit data, including product pictures, quantities, and expiration dates to a server for dynamic pricing and automatic discount application on electronic shelf labels.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual tagging is used to add expiration dates to products, then product identification accuracy is improved, but labor time and operational complexity increase
Solution Approach 1:
The system enables self-service by allowing the scanner to automatically read barcode data and retrieve product information including expiration dates from a database, eliminating the need for manual data entry. The portable device automatically processes and attributes expiration dates to multiple products with the same SKU code.
Solution Approach 2:
The manual mechanical tagging process is replaced with an automated optical scanning system. The barcode scanner reads product codes, and the system automatically retrieves and attributes expiration dates from the database, replacing manual writing or sticking operations with automated data processing.
2Loss of information
If additional tags or stickers are added to products for specific identification, then product information completeness is improved, but device complexity and operational difficulty increase
Solution Approach 1:
The existing barcode system is enhanced to serve multiple functions. The same barcode that identifies the product is also used to retrieve comprehensive product information including expiration dates from the database, eliminating the need for separate identification tags.
Solution Approach 2:
A database acts as an intermediary between the barcode scanner and the product information. The database stores and provides comprehensive product data including expiration dates, quantities, and pricing information, serving as a central repository that connects scanning to information retrieval.
3Measurement precision
If manual tracking of expiration dates is performed, then waste monitoring accuracy is improved, but productivity and efficiency decrease
Solution Approach 1:
The system implements feedback by continuously monitoring expiration dates and automatically calculating dynamic prices based on proximity to expiration. This feedback loop enables real-time waste monitoring and automatic pricing adjustments without manual intervention.
Solution Approach 2:
The system performs preliminary action by pre-calculating dynamic prices and discount levels based on expiration dates before products reach their expiration point. This allows proactive inventory management and automatic pricing adjustments to prevent waste.
Data Source
AI summary
A system and method to attribute expiration dates and quantities of a product to an SKU code for pricing purposes. This method applies dynamic pricing to perishable food items. Using bulk tagging capabilities, the supermarket can attribute expiration dates to items without the pain of actually tagging the items with stickers.