I'm a student of Industrial engineering and I'm interested in OR. After studied Linear programming, Combinatorial optimization, AMPL (and a background in economics & computer programming) I would like to focus on some specific area of Operations Research. So, I thought to "Price Optimization". Someone here works in this area? I would like an opinion about this field of work. Is there a "need" for this? I read a lot about examples for Hotels and flights company, but there are some real-world use cases in other industries?

2) May you suggest some books to learn about Price Optimization? I found out this book, is a good starting point? http://www.amazon.com/gp/product/0804746982?ie=UTF8&colid=1EN7U9TNKFBRX&coliid=IOFUJSWJVVEGW&ref_=wl_it_dp_o_pC_S_nC

asked 19 Sep '13, 11:04

x3d0's gravatar image

x3d0
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edited 19 Sep '13, 11:05


I do think there is demand in this area. You might search "yield management" as well. One caveat: if I were hiring someone to do this type of work, I would look for someone who has had course work (beyond just an introductory course or two) in marketing, preferably with some work experience.

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answered 19 Sep '13, 16:28

Paul%20Rubin's gravatar image

Paul Rubin ♦♦
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Ok, so do you suggest "yield management" only after a marketing career instead of engineering one? Which are some fields of work in OR to focus on that involves management and computer programming skills, that do you suggest nowadays for a student in industrial engineering?

(20 Sep '13, 07:38) x3d0

I wouldn't say "career" in marketing; I'd just say that a background in/understanding of marketing (greater than a single introductory course) might be considered important. IE students can certainly find in jobs in logistics, operations management or supply chain management. Again, some employers might look for an indication of an understanding of the business side; some might be willing to hire a "pure quant" and have them learn the business side on the job.

(20 Sep '13, 10:39) Paul Rubin ♦♦

Ok, thanks. What are areas of RO where do you suggest to invest time on it for an Industrial/Computer Science Engineer?

(20 Sep '13, 14:15) x3d0

Sorry, don't know enough of the specifics of RO to give a meaningful answer to that. Maybe someone else can.

(21 Sep '13, 11:56) Paul Rubin ♦♦

We have teams working in this area at IBM. One is the DemandTec team in IBM Software group that works on retail price optimization, mardown optimization, and related problems. The team includes a mix of data scientists and optimization experts. Another one is ILOG Optimization team, involved in some price optimization projects. For instance, I've been (a bit) involved in a project for a major European retailer. IBM Research also has an activity here. All these team collaborate of course. Last, this paper describes Edelmann Award winner Intercontinental Hotel price optimization application that leverages our CPLEX solver.

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answered 21 Sep '13, 04:19

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jfpuget
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accept rate: 8%

edited 21 Sep '13, 08:01

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Asked: 19 Sep '13, 11:04

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