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Abstract
This paper presents a case study conducted with a distributor to improve price performance for a national hardware distribution network. This case illustrates a simplified heuristic approach to improving pricing performance in situations where optimal pricing analysis on an individual SKU basis is impractical and IS decision support systems are needed. We find substantial opportunities to improve margins for retailers in this context, particularly among low-margin product families. Our findings are reported with permission of senior management at the distributor, but data have been masked to preserve confidentiality.
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Abstract
This paper presents a case study conducted with a distributor to improve price performance for a national hardware distribution network. This case illustrates a simplified heuristic approach to improving pricing performance in situations where optimal pricing analysis on an individual SKU basis is impractical and IS decision support systems are needed. We find substantial opportunities to improve margins for retailers in this context, particularly among low-margin product families. Our findings are reported with permission of senior management at the distributor, but data have been masked to preserve confidentiality.