International Journal of Computational Intelligence Systems

Volume 6, Issue 1, January 2013, Pages 64 - 78

Markdown Optimization via Approximate Dynamic Programming

Authors
Özlem Coşgun, Ufuk Kula, Cengiz Kahraman
Corresponding Author
Özlem Coşgun
Received 10 March 2012, Accepted 4 September 2012, Available Online 2 January 2013.
DOI
https://doi.org/10.1080/18756891.2013.754181How to use a DOI?
Keywords
Approximate Dynamic Programming, Multinomial logit model, Cross-price elasticity, Markdown optimization, Pricing
Abstract
We consider the markdown optimization problem faced by the leading apparel retail chain. Because of substitution among products the markdown policy of one product affects the sales of other products. Therefore, markdown policies for product groups having a significant crossprice elasticity among each other should be jointly determined. Since the state space of the problem is very huge, we use Approximate Dynamic Programming. Finally, we provide insights on the behavior of how each product price affects the markdown policy.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Journal
International Journal of Computational Intelligence Systems
Volume-Issue
6 - 1
Pages
64 - 78
Publication Date
2013/01/02
ISSN (Online)
1875-6883
ISSN (Print)
1875-6891
DOI
https://doi.org/10.1080/18756891.2013.754181How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - JOUR
AU  - Özlem Coşgun
AU  - Ufuk Kula
AU  - Cengiz Kahraman
PY  - 2013
DA  - 2013/01/02
TI  - Markdown Optimization via Approximate Dynamic Programming
JO  - International Journal of Computational Intelligence Systems
SP  - 64
EP  - 78
VL  - 6
IS  - 1
SN  - 1875-6883
UR  - https://doi.org/10.1080/18756891.2013.754181
DO  - https://doi.org/10.1080/18756891.2013.754181
ID  - Coşgun2013
ER  -