Speaker: Jeannette Song, Duke University
\nDate & Time: November 5, 2021, Friday, 16:00<\/p>\n
***This is an online event. To obtain Zoom link and password, please contact to the department.<\/p>\n
Title: Data-driven Dynamic Pricing and Ordering with Perishable Inventory in
\na Changing Environment<\/p>\n
Abstract: We consider a grocery retailer selling a perishable product in a
\ndynamic environment where consumers’ price sensitivity changes at unknown
\ntimes (due to pandemics, weather events, etc.), and the product perishes at
\nan unknown rate. We design online price experiments for learning about these
\nunknown features over time. We then prescribe how to use the newly gained
\nknowledge and the most up-to-date data to make informed joint pricing and
\ninventory ordering decisions. Depending on whether the demand shock
\ndistribution is parametric or nonparametric, we design two versions of the
\ndata-driven pricing and ordering (DDPO) algorithm with the best achievable
\nperformance guarantee. Implementing our algorithm on a real-life data set
\nfrom a supermarket chain, we show that our data-driven, learning-and-earning
\napproach significantly outperforms the historical decisions of the
\nsupermarket chain by reducing the profit loss due to uncertainty by over
\n80%. In particular, avoiding active learning for price-sensitivity changes
\nleads to an annual profit loss of over 62 million U.S. dollars; avoiding
\nactive learning for perishability results in a yearly profit loss of over 11
\nmillion U.S. dollars. (Joint work with Bora Keskin and Yuexing Li of Duke
\nUniversity.)<\/p>\n
Bio: Jeannette Song is the R. David Thomas Professor of Business
\nAdministration and a Professor of Operations Management at the Fuqua School
\nof Business of Duke University. She obtained her Ph.D. from Columbia
\nUniversity. Professor Song’s expertise is in supply chain management and
\noperations strategy. Her current research projects include data-driven
\noperational decision making, 3D printing and supply chain digitization,
\nglobal supply chain risk mitigation, and socially responsible operations.
\nShe is an INFORMS Fellow and a Fellow and former President of the
\nManufacturing and Service Operations Management (MSOM) Society. She
\ncurrently serves as a Department Editor for Management Science and Service
\nScience.<\/p>\n","protected":false},"excerpt":{"rendered":"
Speaker: Jeannette Song, Duke University Date & Time: November 5, 2021, Friday, 16:00 ***This is an online event. To obtain Zoom link and password, please contact to the department. Title: Data-driven Dynamic Pricing and Ordering with Perishable Inventory in a Changing Environment Abstract: We consider a grocery retailer selling a [\u2026] <\/p>\n