International Journal of Production Research volume 56, issue 1-2, P809-816 2017 DOI: 10.1080/00207543.2017.1404161 View full text
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David Simchi-Levi, Michelle Xiao Wu

Abstract: Retailers face significant pressure to improve revenue, margins and market share by applying price optimization models. These are mathematical models that calculate how demand varies at different price levels, then combine that data with information on costs and inventory levels to recommend prices that will improve revenue and profits. These models have been around for a while-so what is different now? We have identified three important changes:-Data: availability of internal and external real time data such …

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