Markdown Price Recommendation for Retail Giant
About the customer
Use Case Type: Pricing Optimization, Inventory Management
Markdown Price Recommendation for Retail Giant
Business Problem
A leading retail giant faced challenges in optimizing markdown pricing, leading to inefficient inventory management and reduced profitability. The company needed a strategic approach to apply discounts without hurting margins.
Solution: ORMAE implemented a Mixed Integer Programming (MIP) model to develop an optimal promotion calendar, considering various constraints such as promotion timing, frequency, and product eligibility.
Our Approach
The system analyzed sales trends and inventory levels to recommend optimal discount rates, balancing clearance needs with profitability
Get in Touch
Have a project in mind?
Looking for collaboration?
Send an email to bdm@ormae.com
for availability and enquires.
The Result
The company shifted from arbitrary discounting to a data-driven approach, resulting in improved revenue optimization and inventory turnover. Key features included predictive analytics, heuristic optimization, and integrated reporting.
Impact
- 15% increase in clearance sales.
- 10% reduction in inventory holding costs.
- Enhanced profitability through strategic discounting of cargo carried and discharged.
Get in Touch
Have a project in mind?
Looking for collaboration?
Send an email to bd@ormae.com
for availability and enquires.