PROMOTION OPTIMIZATION IN COMPETITIVE ENVIRONMENTS BY CONSIDERING THE CANNIBALIZATION EFFECT

This study proposes a new model to optimize sales promotion in competitive markets and examines the impact of competition on sales promotion planning and business performance in retail chains. The model can be used to determine the best promotional discount for different products with a cannibalization effect when competitors are present in the retail market and offer the same products with different discounts. An integer nonlinear programming problem is proposed to model the above issue. To solve the model, it is reformulated as a mixed-integer linear programming problem. Consequently, a MIP solver can be used to solve the model in a reasonable CPU time. Several examples are solved and a sensitivity analysis of the model parameters is performed. The results of our numerical study show interesting findings that considering different competitors is very important in promotion planning and optimization. Failure to take them into account can lead to loss of profits

Evaluating the impact of strategic personnel policies using a MILP model: the public university case

Purpose: The main purpose of the paper is to evaluate the impact of diverse personnel policies around personnel promotion in the design of the strategic staff plan for a public university. The strategic staff planning consists in the determination of the size and composition of the workforce for an organization. Design/methodology/approach: The staff planning is solved using a Mixed Integer Linear Programming (MILP) model. The MILP model represents the organizational structure of the university, the personnel categories and capacity decisions, the demand requirements, the required service level and budget restrictions. All these aspects are translated into a set of data, as well as the parameters and constraints building up the mathematical model for optimization. The required data for the model is adopted from a Spanish public university. Findings: The development of appropriate policies for personnel promotion can effectively reduce the number of dismissals while proposing a transition towards different preferable workforce structures in the university. Research limitations/implications: The long term staff plan for the university is solved by the MILP model considering a time horizon of 8 years. For this time horizon, the required input data is derived from current data of the university. Different scenarios are proposed considering different temporal trends for input data, such as in demand and admissible promotional ratios for workers. Originality/value: The literature review reports a lack of formalized procedures for staff planning in universities taking into account, at the same time, the regulations on hiring, dismissals, promotions and the workforce heterogeneity, all considered to optimize workforce size and composition addressing not only an economic criteria, but also the required workforce expertise and the quality in the service offered. This paper adopts a formalized procedure developed by the authors in previous works, and exploits it to assess the impact of various personnel policies in the staff planning for a particular university case, and this is the principal contribution of the paper.Postprint (published version

The determination of optimal time-in-grade for promotion at each rank in the Turkish Army

Ankara : The Department of Management and Institute of Economics and Social Sciences of Bilkent University, 2001.Thesis (Master's) -- Bilkent University, 2001.Includes bibliographical references leaves 93-95.The increasing pace of development in Human Resource Management makes an objective promotion system more valid than a system on subjective criteria in the Turkish Army. Therefore, the Army Headquarters tries to adapt an appropriate promotion system and criteria to The Turkish Army’s big hierarchical structure. Thus, the gap between the current and required officer inventory in the promotion system is thought to be minimized.In this study, the validity of a new promotion system, which is still under consideration in Human Resource Department of The Turkish Army, is evaluated against the current promotion system in The Turkish Army to establish a base for further quantitative research. The core of the study focuses on a non-linear optimization problem. The optimization is to obtain optimal values for time to wait at a rank until promotion. Optimal values of the selected promotion criteria, time – in-grade, are thought to make great contribution to further personnel decisions in The Turkish Army’s promotion system. The constructed model also supports the manpower planning requirements of the Army in determining the impact of existing policies on given promotion criteria over the long term.Şenerdem, Barbaros HayrettinM.S

A model for cost efficient Workforce Organizational Dynamics and its optimization

This paper presents a workforce planning model scalable to an entire hierarchical organization. Its main objective is to design a cost optimal target which leverages flexible workforce solutions while ensuring an efficient promotional flux. The value of this paper lies in its proposal of an adequate flexibility rate using various solution types and in its discussion about external hiring ratios. The mathematical structures of the models are analyzed and numerical simulations illustrate the theoretical background

Optimal duration of magazine promotions

The planning of promotions and other marketing events frequently requires manufacturers to make decisions about the optimal duration of these activities. Yet manufacturers often lack the support tools for decision making. We assume that customer decisions at the aggregated level follow a state-dependent Markov process. On the basis of the expected economic return associated with dynamic response to stimuli, we determine the ideal length of marketing events using dynamic programming optimization and apply the model to a complex promotion event. Results suggest that this methodology could help managers in the publishing industry to plan the optimal duration of promotion event

Financial Benefits of Florida Generic Orange Juice Marketing

The benefits to Florida orange growers of generic orange juice advertising are assessed using additive, nonlinear, regional econometric models, measuring the impact of category and brand marketing efforts on category demand while controlling for pricing and various other factors. The study shows that generic marketing efforts increased orange juice category demand by 8.3 percent, resulting in increased orange prices and a benefit-to-cost ratio to Florida growers of 3.5 to 1. Branded promotional activity was found to primarily fuel brand switching and pantry-loading, with only modest impacts on overall category demand.marketing mix, marketing spend optimization, checkoff program, orange juice, benefit to cost ratio, Marketing,

Impact of Forecast Errors on Expansion Planning of Power Systems with a Renewables Target

This paper analyzes the impact of production forecast errors on the expansion planning of a power system and investigates the influence of market design to facilitate the integration of renewable generation. For this purpose, we propose a stochastic programming modeling framework to determine the expansion plan that minimizes system-wide investment and operating costs, while ensuring a given share of renewable generation in the electricity supply. Unlike existing ones, this framework includes both a day-ahead and a balancing market so as to capture the impact of both production forecasts and the associated prediction errors. Within this framework, we consider two paradigmatic market designs that essentially differ in whether the day-ahead generation schedule and the subsequent balancing re-dispatch are co-optimized or not. The main features and results of the model set-ups are discussed using an illustrative four-node example and a more realistic 24-node case study