Host: NPO: Transdisciplinary Federation of Science and Technology
Optimization or mathematical programming techniques have a wide range of applications in the areas of engineering, social sciences and the like. In this presentation, we consider an application of optimization models to marketing data analysis. First, we develop a bid price prediction model for used cars. We apply least absolute value (LAV) estimation to regression analysis instead of ordinary least squares (OLS) estimation, and by using integer programming we choose the best set of explanatory variables. Next, we propose a new model of retail shelf space management, where the optimal table menus for sales promotion are selected simultaneously with allocating shelf space to individual products. Using a piecewise linearization framework, we formulate the problem as a liner programming one and solve it efficiently.
