Fluid approximation to pricing batched products with no product type mixing within batches
| Autor: | David McCaffrey, Barbara Jenkins, Tom Liptrot, Matthieu Delorme |
|---|---|
| Rok vydání: | 2012 |
| Předmět: |
Demand management
Truck Economics and Econometrics Revenue management Opportunity cost Operations research Vendor business.industry Strategy and Management ComputerApplications_COMPUTERSINOTHERSYSTEMS Product type Business process management Economics Yield management Business and International Management business Finance |
| Zdroj: | Journal of Revenue and Pricing Management. 11:596-606 |
| ISSN: | 1477-657X 1476-6930 |
| Popis: | We consider a vendor selling a combined offer of multiple product types plus delivery, where delivery capacity is limited. Delivery occurs in batches each containing only a single product type. This situation occurs for fuel wholesalers who deliver to customers in tanker trucks, which can carry only one fuel grade per trip. In certain fuel markets, customers are quoted individualised prices based on willingness-to-pay segmentation. Optimising such prices requires an estimate of the opportunity cost of the remaining delivery capacity. We adapt standard fluid approximation estimates of opportunity cost to accommodate discrete assignment of product type to delivery unit. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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