A New Approach to Demand Modelling and Optimisation in Pricing Decision Support Systems

Content Provider	IEEE Xplore Digital Library
Author	Fox, David Zeng, Xiao-Jun
Copyright Year	2013
Description	Pricing decision support systems have been developed in order to help retail companies optimise their prices. This paper aims to enhance the essential forecasting and optimisation techniques that underlie these systems. This is first done by applying the method of Dynamic Linear Models in order to provide more accurate forecasts compared with current models. We also present a new pricing optimisation technique which provides the highest guaranteed profit when a competitor's price can't be forecasted. Existing optimisers assume that a competitor never reacts to a change in own price but this assumption can't be trusted since competitor prices are never forecasted. This new approach is applied to the forecasting and optimisation of daily retail vehicle fuel pricing using real commercial data, showing its improved results in both cases.
Starting Page	74
Ending Page	79
File Size	353172
Page Count	6
File Format	PDF
ISBN	9781479906529
DOI	10.1109/SMC.2013.20
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2013-10-13
Publisher Place	United Kingdom
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	decision support system price optimisation demand modelling retail vehicle fuel
Content Type	Text
Resource Type	Article