MSRC Seminar
Management Science Research Centre
presents
Managing Customer Goodwill Using Approximate Dynamic Programming
Prof. Daniel Adelman
Booth School of Business, University of Chicago
Friday, October 30th, 2009
12:00 PM – 2:00 PM
Samuel Bronfman Building
1001 Sherbrooke St. W
RM 310
All are cordially invited to attend.
Abstract:
We study the problem faced by a supplier deciding how to
dynamically allocate limited capacity among a portfolio of
customers who remember the fill rates provided to them in the past
when making ordering decisions. Customers differ from one another
in the prices they are willing to pay, in their sensitivity to the
past, and in their demand volatility. We seek to understand the
impacts of these factors on the supplier's allocation policy. We
approach the problem using approximate dynamic
programming.
