scholarly journals Asymmetric Pricing and Replenishment Controls for Substitutable Products

2019 ◽  
Vol 50 (5) ◽  
pp. 1093-1119
Author(s):  
Oben Ceryan
Keyword(s):  
Asymmetric Pricing ◽  
Substitutable Products

Optimal Policy for Dynamic Assortment Planning Under Multinomial Logit Models

2021 ◽  
Author(s):  
Xi Chen ◽  
Yining Wang ◽  
Yuan Zhou
Keyword(s):  
Choice Model ◽  
Current Knowledge ◽  
Search Algorithm ◽  
Multinomial Logit ◽  
Planning Problem ◽  
Assortment Planning ◽  
Substitutable Products ◽  
Dynamic Decisions ◽  
Mnl Model ◽  
Regret Bound

We study the dynamic assortment planning problem, where for each arriving customer, the seller offers an assortment of substitutable products and the customer makes the purchase among offered products according to an uncapacitated multinomial logit (MNL) model. Because all the utility parameters of the MNL model are unknown, the seller needs to simultaneously learn customers’ choice behavior and make dynamic decisions on assortments based on the current knowledge. The goal of the seller is to maximize the expected revenue, or, equivalently, to minimize the expected regret. Although dynamic assortment planning problem has received an increasing attention in revenue management, most existing policies require the estimation of mean utility for each product and the final regret usually involves the number of products [Formula: see text]. The optimal regret of the dynamic assortment planning problem under the most basic and popular choice model—the MNL model—is still open. By carefully analyzing a revenue potential function, we develop a trisection-based policy combined with adaptive confidence bound construction, which achieves an item-independent regret bound of [Formula: see text], where [Formula: see text] is the length of selling horizon. We further establish the matching lower bound result to show the optimality of our policy. There are two major advantages of the proposed policy. First, the regret of all our policies has no dependence on [Formula: see text]. Second, our policies are almost assumption-free: there is no assumption on mean utility nor any “separability” condition on the expected revenues for different assortments. We also extend our trisection search algorithm to capacitated MNL models and obtain the optimal regret [Formula: see text] (up to logrithmic factors) without any assumption on the mean utility parameters of items.

Demand Management and Inventory Control for Substitutable Products

2021 ◽  
Author(s):  
Jing-Sheng Jeannette Song ◽  
Zhengliang Xue ◽  
Xiaobei Shen
Keyword(s):  
Inventory Control ◽  
Demand Management ◽  
Substitutable Products

Pricing decisions for substitutable products with a common retailer in fuzzy environments

2012 ◽  
Vol 216 (2) ◽  
pp. 409-419 ◽  
Author(s):  
Jing Zhao ◽  
Wansheng Tang ◽  
Ruiqing Zhao ◽  
Jie Wei
Keyword(s):  
Pricing Decisions ◽  
Substitutable Products
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