Volume 6, Issue 1, January 2013, Pages 64 - 78
Markdown Optimization via Approximate Dynamic Programming
Özlem Coşgun, Ufuk Kula, Cengiz Kahraman
Received 10 March 2012, Accepted 4 September 2012, Available Online 2 January 2013.
- https://doi.org/10.1080/18756891.2013.754181How to use a DOI?
- Approximate Dynamic Programming, Multinomial logit model, Cross-price elasticity, Markdown optimization, Pricing
- 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.
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 -