Demand Forecasting and Optimization

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SLab combines economic theory and quantitative methods to cover the following project areas and more:

  • Demand forecasting (for all type of firms and products)
    • Quantify how much the firm can expect to sell of each product.
  • Pricing optimization (for all type of firms and products)
    • Evaluate if the firm should increase or decrease its price level to maximize market share, revenue or profit.
    • Evaluate if the firm should charge a uniform price level or engage in price discrimination strategies to maximize market share, revenue or profit.
  • Product/service design optimization (for manufacturing and service firms)
    • Determine the characteristics that the firm should incorporate or change in its product/service to maximize market share, revenue or profit.
  • Product assortment optimization (for retail firms)
    • Determine the assortment of products that the firm should offer to its customers to maximize market share, revenue or profit.
  • Store layout optimization (for retail firms)
    • Define the display layout of products that maximizes market share, revenue or profit.

Examples of projects that were conducted or are being conducted by SLab:

  • Development of a demand forecasting model for TVs in a technological retail company, and identify the value customers attribute to different characteristics of various products;
  • Use of demand forecasting models at a technological retail company to define the assortment of products to display in each store that maximises revenue.