A discrete optimization model for seasonal merchandise planning

摘要

Buyers in retail chains typically plan promotional markdowns and accompanying adver- tising for the complete season, subject to budgetary and scheduling constraints. Because of the large number of possible alternatives and the difficulty of predicting the sales response to novel plans, promotional plans are currently prepared through trial and error, by modifying previous year's plans. This paper proposes a methodology for devel- oping an optimal promotional plan that maximizes total season profit, subject of promotional resource constraints and as set of possible market scenarios, by selecting from a discrete set of candidate ads and markdowns.