functionally robust optimization

A Data Driven Functionally Robust Approach for Coordinating Pricing and Order Quantity Decisions with Unknown Demand Function

  • Jian Hu
  • Sanjay Mehrotra
  • Junxuan Li
    • Categories Marketing, Robust Optimization, Supply Chain Management Tags , ,

    We consider a retailer’s problem of optimal pricing and inventory stocking decisions for a product. We assume that the price-demand curve is unknown, but data is available that loosely specifies the price-demand relationship. We propose a conceptually new framework that simultaneously considers pricing and inventory decisions without a priori fitting a function to the price-demand … Read more