Analysis of cross-price effects on markdown policies by using function approximation techniques

Coşgun, Özlem; Kula, Ufuk; Kahraman, Cengiz

doi:10.1016/j.knosys.2013.08.029

Cited by 7 publications

(2 citation statements)

References 20 publications

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“…From the demand modeling perspective, interactions between different products are also important for customer demand [14] [13]. Specifically, Cosgun et al [13,14] utilize approximate dynamic programming to optimize the markdown levels of multiple products using a linear demand model. Wang et al [37] consider markdown optimization of holiday items left over after the Christmas period.…”

Section: Literature Reviewmentioning

confidence: 99%

Markdown Optimization with Generalized Weighted Least Squares Estimation

Hekimoğlu

2022

Int J Comput Intell Syst

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Retailers increasingly apply price markdowns for their seasonal products. Efficiency of these markdown applications is driven by the accuracy of empirical models, especially toward the end of a selling season. In the literature, recent sales are recognized to be more important than older sales data for estimating the current period’s demand for a given markdown level. The importance difference between the weeks of a selling season is addressed by weighted least squares (WLS) method with continuous weight functions of time. This study suggests a generalization of the weight functions and a method for optimizing their shape and discretization parameters to stimulate the predictive accuracy of models. We find that addressing the importance difference of recent sales observations using our generalized weight functions improves the forecast accuracy by up to 20%, and most of the improvement stems from our weight discretization method.

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Section: Literature Reviewmentioning

confidence: 99%

Markdown Optimization with Generalized Weighted Least Squares Estimation

Hekimoğlu

2022

Int J Comput Intell Syst

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“…Their study is important for us, because it the part of the research stream that we would like to contribute for future works. Coşgun et al (2012) [10] studied markdown optimization which is about the one of the main problem for retail chain in apparel sector. The problem is originated substitute products.…”

Section: Introductionmentioning

confidence: 99%

Markdown Optimization in Apparel Retail Sector

Yıldız

Hekimoğlu

2020

Advances in National Brand and Private Label Marketing

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Over last decades, rapidly growing textile and apparel industry has become an important sector. The branding and ever-changing fashion sense have been a trigger for a major competition environment. Nowadays, increasing competition has accompanied by rapidly changing demand. This changing demand leads to imbalances between aggregate demand and inventory when combined with long lead times. In a sector where lead time is longer than the season, such as fashion sector, the elapsed time between demand and lead time makes dynamic prices important. Dynamic pricing is to change the sales price of the product over time, taking into account the remaining inventory and taking into account the up-todate customer demand. In this way, the inventory level of the products during the season can be controlled through demand and the cost of stock keeping and transportation can be reduced.

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Stochastic dynamic resource allocation for HIV prevention and treatment: An approximate dynamic programming approach

Coşgun

Büyüktahtakın

2018

Computers & Industrial Engineering

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Analysis of cross-price effects on markdown policies by using function approximation techniques

Cited by 7 publications

References 20 publications

Markdown Optimization with Generalized Weighted Least Squares Estimation

Markdown Optimization with Generalized Weighted Least Squares Estimation

Markdown Optimization in Apparel Retail Sector

Stochastic dynamic resource allocation for HIV prevention and treatment: An approximate dynamic programming approach

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