dynamic pricing – Optimization Online

Joint Inventory and Revenue Management with Removal Decisions

Published: 2017/08/08, Updated: 2017/10/07

Applications - OR and Management Sciences, Dynamic Programming, Supply Chain Management capacity management, dynamic pricing, dynamic programming, inventory management, l natural concavity, revenue management, supermodularity

We study the problem of a retailer that maximizes profit through joint replenishment, pricing and removal decisions. This problem is motivated by the observation that retailers usually retain rights to remove inventory from their network either by returning it to the suppliers or through liquidation in the face of random demand and capacity constraints. We … Read more

Data-driven learning in dynamic pricing using adaptive optimization

Published: 2014/10/11

Dimitris Bertsimas

Phebe Vayanos

Applications - OR and Management Sciences, Robust Optimization adjustable robust optimization, decision rule, decision-dependent uncertainty set, dynamic pricing, exploration-exploitation, generalized semi-infinite programming, learning-earning

We consider the pricing problem faced by a retailer endowed with a finite inventory of a product offered over a finite planning horizon in an environment where customers are price-sensitive. The parameters of the product demand curve are fixed but unknown to the seller who only has at his disposal a history of sales data. … Read more