Optimal selection of customers for a last-minute offer

Optimal selection of customers for a last-minute offer

0.00 Avg rating0 Votes
Article ID: iaor20105587
Volume: 58
Issue: 4-Part-1
Start Page Number: 878
End Page Number: 888
Publication Date: Jul 2010
Journal: Operations Research
Authors: , , ,
Keywords: retailing
Abstract:

We analyze a short-term revenue optimization problem involving the targeting of customers for a promotion in which a finite number of perishable items are sold on a last-minute offer. The goal is to select the subset of customers to whom the offer will be made available in order to maximize the expected return. Each client replies with a certain probability and reports a specific value that might depend on the customer type, so that the selected subset has to balance the risk of not selling all items with the risk of assigning an item to a low value customer.

Reviews

Required fields are marked *. Your email address will not be published.