A model and solution method for multi-period sales promotion design

摘要

This research addresses the optimal design of a series of promotions (which might offer free gifts, discounts, or special services) periodically mailed to potential customers. A model and methodology are presented which maximize the multiple purchases of these customers over time using opinions from both promotion designers and customers. A Genetic Algorithm-based heuristic is developed to efficiently arrive at good promotion designs, and the methodology is applied to a problem using real data.