Publication: An index for dynamic product promotion and the knapsack problem for perishable items
Loading...
Identifiers
Publication date
2009-05
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This paper introduces the knapsack problem for perishable items (KPPI), which
concerns the optimal dynamic allocation of a limited promotion space to a collection of
perishable items. Such a problem is motivated by applications in a variety of industries,
where products have an associated lifetime after which they cannot be sold. The paper
builds on recent developments on restless bandit indexation and gives an optimal
marginal productivity index policy for the dynamic (single) product promotion problem
with closed-form indices that yield estructural insights. The performance of the proposed policy for KPPI is investigated in a computational study.
Description
Keywords
Dynamic promotion, Perishable items, Index policies, Knapsack problem, Festless bandits, Finite horizon, Marginal productivity index