Tuesday, 13:45 - 14:10 h, Room: MA 376

 

Miriam Kießling
ISPO – Integrated size and price optimization for a fashion discounter with many branches

Coauthors: Sascha Kurz, Jörg Rambau

 

Abstract:
We present the integrated size and price optimization problem (ISPO)
for a fashion discounter with many branches.
Branches are supplied by pre-packaged bundles consisting of items of
different size and number - so-called lot-types. Our goal is to find a
revenue-maximizing supply strategy.
Based on a two-stage stochastic programming model including the effect of markdowns as recourse, we developed an exact branch-and-bound
algorithm where dual bounds are obtained by combinatorial bounds
combined with LP-relaxations. For practical purposes we developed a
production-compliant heuristic, the so-called ping-pong-heuristic, that uses
the special structure of the problem by alternately solving price and size
optimization. In all tested cases we obtain very small optimality gaps
(< 0.03,%).
In a field study we show that a distribution of supply over branches
and sizes based on ISPO solutions leads to better results in terms of realized return than a one-stage
optimization of the distribution ignoring the possibility of optimal pricing.

 

Talk 2 of the invited session Tue.2.MA 376
"Computational aspects of stochastic integer programming for large-scale and/or real-world problems" [...]
Cluster 22
"Stochastic optimization" [...]

 

  Florida Payday Loans can help you in trying times, but be sure to know the laws necessary for your loan application. If you have already decided to take Generic Levitra, be sure to consult a doctor, you don't have any contraindications and act strictly due to a prescription.