Models and Algorithms for the Product Pricing with Single-Minded Customers Requesting Bundles - Archive ouverte HAL Access content directly
Journal Articles Computers and Operations Research Year : 2020

Models and Algorithms for the Product Pricing with Single-Minded Customers Requesting Bundles

Abstract

We analyze a product pricing problem with single-minded customers, each interested in buying a bundle of products. The objective is to maximize the total revenue and we assume that supply is unlimited for all products. We contribute to a missing piece of literature by giving some mathematical formulations for this single-minded bundle pricing problem. We first present a mixed-integer nonlinear program with bilinear terms in the objective function and the constraints. By applying classical linearization techniques, we obtain two different mixed-integer linear programs. We then study the polyhedral structure of the linear formulations and obtain valid inequalities based on an RLT-like framework. We develop a Benders decomposition to project strong cuts from the tightest model onto the lighter models. We conclude this work with extensive numerical experiments to assess the quality of the mixed-integer linear formulations, as well as the performance of the cutting plane algorithms and the impact of the preprocessing on computation times.
Fichier principal
Vignette du fichier
preprint-20190304.pdf (562.92 Ko) Télécharger le fichier
Origin : Files produced by the author(s)
Loading...

Dates and versions

hal-02056763 , version 1 (04-03-2019)

Identifiers

Cite

Víctor Bucarey, Sourour Elloumi, Martine Labbé, Fränk Plein. Models and Algorithms for the Product Pricing with Single-Minded Customers Requesting Bundles. Computers and Operations Research, 2020, ⟨10.1016/j.cor.2020.105139⟩. ⟨hal-02056763⟩
216 View
842 Download

Altmetric

Share

Gmail Facebook X LinkedIn More