Adam Elmachtoub: Pricing Analytics for Reusable Resources
Speaker: Adam Elmachtoub
Date: 07-27-21 10:30AM EST
Link: Lecture
Abstract:
We consider the problem of pricing for reusable resources, which are items that can be consumed and reused afterwards such as hotel rooms, cloud computing, shared vehicles, and rotable spare parts. We develop a model to maximize a combination of profit rate, market share, and service level, which also captures the special dynamics of reusable resources. We prove that a static pricing policy achieves strong performance guarantees compared to a fully dynamic pricing policy. We also discuss a large-scale implementation of our pricing model at a large aircraft OEM in the context of rotable spare parts. This is joint work with Omar Besbes and Yunjie Sun.