EDI-Driven Dynamic Pricing for Retail Systems Using Real-Time Supply Chain Data

Abstract

Retail pricing decisions depend on several operational variables, including supplier costs, customer demand, and inventory availability. Many retailers still implement scheduled price updates through manual processing or periodic calculations based on databases. This may cause a delay between supply chain events and price changes. Electronic Data Interchange (EDI) systems are already used for the transmission of large volumes of data between suppliers and retailers in a structured format. The data exchanged includes information on supplier costs, confirmations, and inventory levels. However, the data exchanged through EDI systems is rarely integrated directly with pricing algorithms. This study proposes a system architecture that connects EDI transaction data with automated pricing models. The framework integrates an EDI message interface, transaction processing layer, centralized retail database, and pricing engine. The proposed architecture demonstrates how supply chain events transmitted through EDI messages can trigger automated pricing calculations, providing continuous operational input for retail pricing decisions.