Revenue management for perishable products using simulation
Revenue management for perishable products using simulation
We describe a methodology to find the expected number of sales for a given stock of a perishable product, and hence the optimal pricing strategy, over a given finite selling period. The methodology uses a stochastic simulation model that provides confidence ranges on the numbers of sales over the selling period. These ranges are designed to provide warnings to users of unusual buying behaviour. An updating procedure is also described that allows us to quickly update the price structure during the selling period as information about cumulative sales becomes available. We present two examples showing how the optimal price structure is updated during the selling period based on the latest sales data.
114-120
Anjos, M.F.
8c21de9c-8bc1-4fce-9d64-179fd2288b73
Cheng, R.C.H.
a4296b4e-7693-4e5f-b3d5-27b617bb9d67
Currie, C.S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
2003
Anjos, M.F.
8c21de9c-8bc1-4fce-9d64-179fd2288b73
Cheng, R.C.H.
a4296b4e-7693-4e5f-b3d5-27b617bb9d67
Currie, C.S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
Anjos, M.F., Cheng, R.C.H. and Currie, C.S.M.
(2003)
Revenue management for perishable products using simulation.
Sixth National Conference of the UK Simulation Society, Cambridge, UK.
08 - 10 Apr 2003.
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
We describe a methodology to find the expected number of sales for a given stock of a perishable product, and hence the optimal pricing strategy, over a given finite selling period. The methodology uses a stochastic simulation model that provides confidence ranges on the numbers of sales over the selling period. These ranges are designed to provide warnings to users of unusual buying behaviour. An updating procedure is also described that allows us to quickly update the price structure during the selling period as information about cumulative sales becomes available. We present two examples showing how the optimal price structure is updated during the selling period based on the latest sales data.
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Published date: 2003
Venue - Dates:
Sixth National Conference of the UK Simulation Society, Cambridge, UK, 2003-04-08 - 2003-04-10
Organisations:
Operational Research
Identifiers
Local EPrints ID: 29674
URI: http://eprints.soton.ac.uk/id/eprint/29674
PURE UUID: 0b622962-3f86-4710-9c32-f373b1547aca
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Date deposited: 31 May 2006
Last modified: 12 Dec 2021 03:21
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Author:
M.F. Anjos
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