We propose an approach to the timing of markdowns over a finite time horizon that does not require the precise knowledge of the underlying probabilities, instead relying on range forecasts for the arrival rates of the demand processes, and that captures the degree of the manager’s risk aversion through intuitive budget-of-uncertainty functions. These budget functions … Read more
In this work, we establish a parallel between two classes of pricing problems that have attracted the attention of researchers in economics, theoretical computer science and operations research, each community addressing issues from its own vantage point. More precisely, we contrast the problems of pricing a network or a product line, in order to achieve … Read more
This paper presents a robust branch-cut-and-price algorithm for the Heterogeneous Fleet Vehicle Routing Problem (HFVRP), vehicles may have distinct capacities and costs. The columns in the formulation are associated to q-routes, a relaxation of capacitated elementary routes that makes the pricing problem solvable in pseudo-polynomial time. Powerful new families of cuts are also proposed, which … Read more
We study a pricing problem where buyers with non-uniform demand purchase one of many items. Each buyer has a known benefit for each item and purchases the item that gives the largest utility, which is defined to be the difference between the benefit and the price of the item. The optimization problem is to decide … Read more
We present a robust optimization approach to the problem of pricing a capacitated product over a finite time horizon in the presence of demand uncertainty. This technique does not require the knowledge of the underlying probability distributions, which in practice are difficult to estimate accurately, and instead models random variables as uncertain parameters belonging to … Read more
In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the … Read more