Title :

Models and Algorithms for the Product Pricing with Single-Minded Customers Requesting Bundles

Author(s) :

Bucarey, Víctor [Auteur]
Graphes et Optimisation Mathématique [Bruxelles] [GOM]
Integrated Optimization with Complex Structure [INOCS]
Elloumi, Sourour [Auteur]
Centre d'études et de recherche en informatique et communications [CEDRIC]
CEDRIC. Optimisation Combinatoire [CEDRIC - OC]
Optimisation et commande [OC]
Labbé, Martine [Auteur]
Graphes et Optimisation Mathématique [Bruxelles] [GOM]
Plein, Fränk [Auteur]
Integrated Optimization with Complex Structure [INOCS]

Journal title :

Computers and Operations Research

Publisher :

Elsevier

Publication date :

2020-11-14

ISSN :

0305-0548

English keyword(s) :

Pricing Problems
Integer Programming Formulations
Benders Decomposition

HAL domain(s) :

Informatique [cs]/Mathématique discrète [cs.DM]
Computer Science [cs]/Operations Research [math.OC]

English abstract : [en]

We analyze a product pricing problem with single-minded customers, each interested in buying a bundle of products. The objective is to maximize the total revenue and we assume that supply is unlimited for all products. We ...
Show more >We analyze a product pricing problem with single-minded customers, each interested in buying a bundle of products. The objective is to maximize the total revenue and we assume that supply is unlimited for all products. We contribute to a missing piece of literature by giving some mathematical formulations for this single-minded bundle pricing problem. We first present a mixed-integer nonlinear program with bilinear terms in the objective function and the constraints. By applying classical linearization techniques, we obtain two different mixed-integer linear programs. We then study the polyhedral structure of the linear formulations and obtain valid inequalities based on an RLT-like framework. We develop a Benders decomposition to project strong cuts from the tightest model onto the lighter models. We conclude this work with extensive numerical experiments to assess the quality of the mixed-integer linear formulations, as well as the performance of the cutting plane algorithms and the impact of the preprocessing on computation times.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Centre de Recherche en Informatique, Signal et Automatique de Lille (CRIStAL) - UMR 9189

Source :

Harvested from HAL