Pricing Policy Models: A Case Study in Practical O.R.

Abstract

A simple but robust and widely applicable approach to determining the price discount to use during periodic sales promotions is described. The approach provides an illustration of O.R. methodology, and it is discussed in the context of a problem formulation exercise used for O.R. courses. This discussion clarifies alternatives and provides cautionary notes for those wishing to implement the approach.

Keywords:

• pricing decisions
• methodology