Optimal Bundle Pricing and Ordering jointly in Industrial Tourism

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Rad, Shahin | 2015

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 47033 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Modarres, Mohammad
Abstract:
This study presents an efficient decision making model for tourism services managers. Decisions of bundle pricing and ordering for a perishable multi-product jointly are considered in a multiple period horizon to maximize the expected profit of the firms. The retailer uses bundling strategy for products pricing to give customers discount when buying a bundle of products. The discretionary sales is incorporated which authorizes managers to save inventory for satisfying future demand even if some present demand is lost.
For solving the problem in deterministic case, we apply modified-genetic algorithm and in stochastic case, sequential quadratic programming (SQP), stochastic simulation and modified-genetic algorithm are integrated to design a hybrid intelligent algorithm. In order to validation of proposed approach, we compare the results of numerical examples attaining from this with dynamic programming. Computational analysis yields bundling strategy (for example, offering a package tour) increases profitability in high level of the order quantity and save-inventory policy can provide improvements only if increasing prices is possible in the future
Keywords:
Bundle Pricing ; Genetic Algorithm ; Stochastic Programming ; Simulation ; Order Quantity ; Optimal Order ; Tourism ; Discretionary Sales

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