Robust pricing and production with information partitioning and adaptation

• Main Authors: Perakis, Georgia, Sim, Melvyn, Tang, Qinshen, Xiong, Peng
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2022
• Subjects: Business::Operations management::Supply chain management; Business::Operations management::Production management; Multi-Item; Pricing; Retail Analytics; Clustering; Distributionally Robust Optimization
• Online Access: https://hdl.handle.net/10356/160160
• Institution: Nanyang Technological University

We introduce a new distributionally robust optimization model to address a two-period, multi-item joint pricing and production problem, which can be implemented in a data-driven setting using historical demand and side information pertinent to the prediction of demands. Starting from an additive dem...