A Decision Support System based on Markdown Optimization for Apparel Retailers
Tarih ve Saat
2 Ekim 2017 - 14:00
YerMühendislik Binası A-511
Title: A Decision Support System based on Markdown Optimization for Apparel Retailers
Abstract: In apparel retail business, the main objective is to gain the best possible revenue in short selling season. Retailers have to cope with many uncertainties to achieve this objective. The most important tool to overcome the uncertainties is usually price discounts and campaigns. Merchandising planners generally apply price discounts based on their experience intuitively. The aim of our study is finding a practically applicable and good solution to help managers to decide what time and to which products to apply mark-downs in clearance period. In this study, a decision support system which decides the timing and amounts of discounts is derived. A forecasting model and a dynamic pricing methodology is proposed which decides when to make discounts and which price to be used for each individual SKU’s under uncertainties. The proposed model is applied to a reputable fashion retailer’s historical data and results are evaluated.
Biography: Tufan Baydemir graduated from ITU Meteorological Engineering in 1998. After receiving his education, he started his career as software developer at OBASE. OBASE is a software development company focused on retail operations. In 2013, he was assigned to R&D Team as team leader. In 2017, he completed his Masters of Science degree in Industrial Engineering from Bahcesehir University. Currently he is responsible to improve the abilities of the team members. He offers research projects aiming to raise the quality and standard of company’s products. He uses his domain knowledge and scientific techniques to reduce the costs and increase the supply chain efficiencies. He is also responsible for applying governmental funds to support project’s budgets. He has broad knowledge on retail business and theoretical knowledge of Operations Research concepts such as Mathematical Programming and Statistics. He uses his experience in applying theoretical concepts to the practical applications in retail and service industries.