Download or read book Dynamic Pricing for Non Perishable Products with Demand Learning written by Victor F. Araman and published by . This book was released on 2016 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: A retailer is endowed with a finite inventory of a non-perishable product. Demand for this product is driven by a price-sensitive Poisson process that depends on an unknown parameter, theta; a proxy for the market size. If theta is high then the retailer can take advantage of a large market charging premium prices, but if theta is small then price markdowns can be applied to encourage sales. The retailer has a prior belief on the value of theta which he updates as time and available information (prices and sales) evolve. We also assume that the retailer faces an opportunity cost when selling this non-perishable product. This opportunity cost is given by the long-term average discounted profits that the retailer can make if he switches and starts selling a different assortment of products.The retailer's objective is to maximize the discounted long-term average profits of his operation using dynamic pricing policies. We consider two cases. In the first case, the retailer is constrained to sell the entire initial stock of the non-perishable product before a different assortment is considered. In the second case, the retailer is able to stop selling the non-perishable product at any time to switch to a different menu of products. In both cases, the retailer's pricing policy trades-off immediate revenues and future profits based on active demand learning. We formulate the retailer's problem as a (Poisson) intensity control problem and derive structural properties of an optimal solution which we use to propose a simple approximated solution. This solution combines a pricing policy and a stopping rule (if stopping is an option) depending on the inventory position and the retailer's belief about the value of theta. We use numerical computations, together with asymptotic analysis, to evaluate the performance of our proposed solution.
Download or read book Dynamic Pricing for Perishable Products Using Reinforcement Learning written by Rupal Rana and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Operationalizing Dynamic Pricing Models written by Steffen Christ and published by Springer Science & Business Media. This book was released on 2011-04-02 with total page 363 pages. Available in PDF, EPUB and Kindle. Book excerpt: Steffen Christ shows how theoretic optimization models can be operationalized by employing self-learning strategies to construct relevant input variables, such as latent demand and customer price sensitivity.
Download or read book Dynamic Pricing Model for Substitutable Perishable Products written by 蔡文真 and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Elements of Joint Learning and Optimization in Operations Management written by Xi Chen and published by Springer Nature. This book was released on 2022-09-20 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines recent developments in Operations Management, and focuses on four major application areas: dynamic pricing, assortment optimization, supply chain and inventory management, and healthcare operations. Data-driven optimization in which real-time input of data is being used to simultaneously learn the (true) underlying model of a system and optimize its performance, is becoming increasingly important in the last few years, especially with the rise of Big Data.
Download or read book Optimal Learning written by Warren B. Powell and published by John Wiley & Sons. This book was released on 2012-04-17 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: Learn the science of collecting information to make effective decisions Everyday decisions are made without the benefit of accurate information. Optimal Learning develops the needed principles for gathering information to make decisions, especially when collecting information is time-consuming and expensive. Designed for readers with an elementary background in probability and statistics, the book presents effective and practical policies illustrated in a wide range of applications, from energy, homeland security, and transportation to engineering, health, and business. This book covers the fundamental dimensions of a learning problem and presents a simple method for testing and comparing policies for learning. Special attention is given to the knowledge gradient policy and its use with a wide range of belief models, including lookup table and parametric and for online and offline problems. Three sections develop ideas with increasing levels of sophistication: Fundamentals explores fundamental topics, including adaptive learning, ranking and selection, the knowledge gradient, and bandit problems Extensions and Applications features coverage of linear belief models, subset selection models, scalar function optimization, optimal bidding, and stopping problems Advanced Topics explores complex methods including simulation optimization, active learning in mathematical programming, and optimal continuous measurements Each chapter identifies a specific learning problem, presents the related, practical algorithms for implementation, and concludes with numerous exercises. A related website features additional applications and downloadable software, including MATLAB and the Optimal Learning Calculator, a spreadsheet-based package that provides an introduction to learning and a variety of policies for learning.
Download or read book Network Science Nonlinear Science and Infrastructure Systems written by Terry L. Friesz and published by Springer Science & Business Media. This book was released on 2007-06-10 with total page 365 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is written by leading scholars in Network Science, Nonlinear Science and Infrastructure Systems, expressly to develop common theoretical underpinnings for better solutions to modern infrastructural problems. The book is dedicated to the formulation of infrastructural tools that will better solve problems from transportation networks to telecommunications, Internet, supply chains and more.
Download or read book Development of Optimal Pricing Strategy for Perishable Products written by Srikanta Routroy and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Perishable products are now becoming more perishable due to an increase in the rate of technology innovation, changing customer behavior and increase in the number of competitors. Therefore, managing perishable products in the supply chain is quite difficult, and enhancing profit in perishable supply chain is not easy. As demand for perishable products is dependent on price, developing a pricing strategy is an important issue. In this paper, a generic model is proposed for one stage of perishable supply chain in a dynamic pricing environment, for developing pricing strategy in order to maximize profit. Genetic algorithm toolbox in MATLAB 7.8 is used to solve the problem.
Download or read book Dynamic Pricing and Automated Resource Allocation for Complex Information Services written by Michael Schwind and published by Springer Science & Business Media. This book was released on 2007-04-24 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book develops allocation mechanisms that aim to ensure an efficient resource allocation in modern IT-services. Recent methods of artificial intelligence, such as neural networks and reinforcement learning, and nature-oriented optimization methods, such as genetic algorithms and simulated annealing, are advanced and applied to allocation processes in distributed IT-infrastructures, or grid systems.
Download or read book Optimization and Learning written by Bernabé Dorronsoro and published by Springer Nature. This book was released on 2021-08-16 with total page 377 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume constitutes the refereed proceedings of the 4th International Conference on Optimization and Learning, OLA 2021, held in Catania, Italy, in June 2021. Due to the COVID-19 pandemic the conference was held online. The 27 full papers were carefully reviewed and selected from 62 submissions. The papers presented in the volume are organized in topical sections on synergies between optimization and learning; learning for optimization; machine learning and deep learning; transportation and logistics; optimization; applications of learning and optimization methods.
Download or read book Dynamic Pricing Under Consumer s Sequential Search written by Sajjad Najafi and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We study a firm offering a line of vertically differentiated perishable products with fixed initial inventory over a finite sales season. Consumers arrive at the firm randomly and inspect products sequentially until they find a product to purchase (if any). Consumers evaluate each product in terms of its overall utility revealed to them. Each consumer incurs a positive cost to inspect a product and hence may stop the sequential search without inspecting all the available items. Upon a product's inspection, the utility of the product is known to the consumer, who then decides whether to continue the search. We formulate the firm's and consumer's problems using stochastic dynamic programming and determine the consumers' optimal search decision, the firm's optimal price to charge for each product at each time and the optimal sequence in which to show the products to consumers. We show that consumers' optimal stopping rule, under certain conditions, is myopic and takes a threshold structure. We show that it is optimal for the firm to sequence products in decreasing order of product quality. We show that, in some cases, it is optimal for the firm to increase a perishable product's price over time. This result is in stark contrast to the common result from the literature that prices for perishable products should be reduced over time. However, the fact that a consumer may not be able to see all products during the search can cause the opposite price behavior.
Download or read book The Extinction of the Price Tag written by Sahaj Sharda and published by . This book was released on 2018-04-18 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mathematical and Computational Models for Congestion Charging written by Siriphong Lawphongpanich and published by Springer Science & Business Media. This book was released on 2006-06-05 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rigorous treatments of issues related to congestion pricing are described in this book. It examines recent advances in areas such as mathematical and computational models for predicting traffic congestion, determining when, where, and how much to levy tolls, and analyzing the impact on transportation systems. The book follows recent schemes judged to be successful in London, Singapore, Norway, as well as a number of projects in the United States.
Download or read book INFORMS Annual Meeting written by Institute for Operations Research and the Management Sciences. National Meeting and published by . This book was released on 2009 with total page 644 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Oxford Handbook of Pricing Management written by Özalp Özer and published by OUP Oxford. This book was released on 2012-06-07 with total page 976 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Oxford Handbook of Pricing Management is a comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. The Handbook illustrates the wide variety of pricing approaches that are used in different industries. It also covers the diverse range of methodologies that are needed to support pricing decisions across these different industries. It includes more than 30 chapters written by pricing leaders from industry, consulting, and academia. It explains how pricing is actually performed in a range of industries, from airlines and internet advertising to electric power and health care. The volume covers the fundamental principles of pricing, such as price theory in economics, models of consumer demand, game theory, and behavioural issues in pricing, as well as specific pricing tactics such as customized pricing, nonlinear pricing, dynamic pricing, sales promotions, markdown management, revenue management, and auction pricing. In addition, there are articles on the key issues involved in structuring and managing a pricing organization, setting a global pricing strategy, and pricing in business-to-business settings.
Download or read book Dynamic Pricing with Search Frictions written by Daniel Garcia and published by . This book was released on 2017 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study markets for perishable goods with search frictions. Sellers have a single unit of a good and post prices in every period. Buyers engage in costly search to observe prices and match values. In equilibrium trade starts endogenously and the volume of trade increases over time. Under mild conditions, prices decrease at increasing rates over time. We derive the gains from trade in equilibrium as well as their distribution, and fully characterize the equilibrium for a class of demand functions in markets with evenly matched buyers and sellers. We finally discuss implications for market design, including cancellation policies.
Download or read book Advances in Theory and Practice in Store Brand Operations written by Jiazhen Huo and published by Springer Nature. This book was released on 2021-01-04 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is developed by focusing on the four issues: (1) product strategy of private brand; (2) pricing strategy of private brand; (3) channel strategy with private brand introduction; and (4) supply chain coordination with private brand introduction. Private brand (PB), also known as private label (PL) or store brand (SB), refers to a brand created and controlled by a retailer. In the 1960s and 1970s, private labels began to emerge in France and England. Although private label has grown rapidly worldwide, market share varies greatly from region to region. According to Nielsen's 2018 Global Private Label Report, the largest markets for private-label products are found primarily in the more mature European retail markets. In recent years, many large domestic retail enterprises have launched their own brand products. With the growth of e-commerce, some online retailers have also launched private-label goods. JD started to introduce its private brands in 2010, with annual sales of its private brand products reaching several hundred million yuan. However, at present, the market share of China's private label is only 1-3%, which still has a big gap compared with Europe and America.The main challenges to China's private label lie in private brand operations management. Among them, how to select the correct product categories, how to make pricing decision, how to restructure channels and how to coordinate supply chain after introducing private brands are four operations management problems need to be solved.
