Archives for August 2014

Dynamic pricing horror stories

The hotel industry has accepted these principles behind revenue management and dynamic prices. Many of these dynamic pricing strategies are driven by OR- or analytics-based models, too. Too much of a good idea can turn into the opposite of the original intent. Indeed, drastic changes in prices caused by complex real-time pricing strategies can confuse […]

ILS 2014, a buffet of logistics and OR

This post was originally written for OR Complete. I re-post it here in case you missed the original posting. ILS – a short name for the International Conference on Information Systems, Logistics and Supply Chain, is a bi-annual conference focusing on global supply chain and logistics management, with a focus on information systems and decision support systems. […]

Uncertainty, Models, and the Chaos Out There

Future is dominated by uncertainty. In terms of supply chain management – my main field of application – it comes in terms of variation in lead times or demand levels, or in the form of severe events such as hurricanes which can severely disrupt a supply chain. Optimization can help to cope with uncertainty, but I […]

Local search: uses (good and bad)

Some time ago @lambdadmitry asked me to elaborate  a bit about some discussion about the relevance of local search, which originated from a tweet by @JeffLinderoth. I apologize that it took me so long to complete this post, but I found some additional wisdom in yesterday’s talk by @MikeTrick. I will provide some examples of known problems. […]