|
B_Line Case Studies
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Case 1 - Skirts
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INPUT
|
Base Data
|
| Season length (weeks) |
20 |
| Number of decision periods |
10 |
| Purchase cost ($) |
26.2 |
Holding cost (5 of purchase cost /
unit / period) |
1 |
| Initial price ($) |
68.00 |
Number of price levels in each
period |
3,3,3,3,4,4,5,5,5,5 |
Permissible price levels (% off the
initial price) |
0, 31, 50, 60, 75 |
| Initial inventory |
206 |
|
|
Demand Estimates
|
Period
Number |
Off
Percentage |
Minimum
(Numbers) |
Likely
(Numbers) |
Maximum
(Numbers) |
| 1 |
0 |
10 |
16 |
20 |
| 1 |
31 |
20 |
32 |
40 |
| 1 |
50 |
60 |
80 |
100 |
| 1 |
60 |
0 |
0 |
0 |
| 1 |
75 |
0 |
0 |
0 |
| 2 |
0 |
10 |
16 |
20 |
| 2 |
31 |
20 |
32 |
40 |
| 2 |
50 |
60 |
80 |
100 |
| 2 |
60 |
0 |
0 |
0 |
| 2 |
75 |
0 |
0 |
0 |
| 3 |
0 |
10 |
16 |
20 |
| 3 |
31 |
20 |
32 |
40 |
| 3 |
50 |
60 |
80 |
100 |
| 3 |
60 |
0 |
0 |
0 |
| 3 |
75 |
0 |
0 |
0 |
| 4 |
0 |
10 |
16 |
20 |
| 4 |
31 |
20 |
32 |
40 |
| 4 |
50 |
60 |
80 |
100 |
| 4 |
60 |
0 |
0 |
0 |
| 4 |
75 |
0 |
0 |
0 |
| 5 |
0 |
10 |
16 |
20 |
| 5 |
31 |
20 |
32 |
40 |
| 5 |
50 |
60 |
80 |
100 |
| 5 |
60 |
70 |
90 |
110 |
| 5 |
75 |
0 |
0 |
0 |
| 6 |
0 |
10 |
16 |
20 |
| 6 |
31 |
20 |
32 |
40 |
| 6 |
50 |
60 |
80 |
100 |
| 6 |
60 |
70 |
90 |
110 |
| 6 |
75 |
0 |
0 |
0 |
| 7 |
0 |
10 |
16 |
20 |
| 7 |
31 |
20 |
32 |
40 |
| 7 |
50 |
60 |
80 |
100 |
| 7 |
60 |
70 |
90 |
110 |
| 7 |
75 |
83 |
103 |
123 |
| 8 |
0 |
10 |
16 |
20 |
| 8 |
31 |
20 |
32 |
40 |
| 8 |
50 |
60 |
80 |
100 |
| 8 |
60 |
70 |
90 |
110 |
| 8 |
75 |
83 |
103 |
123 |
| 9 |
0 |
10 |
16 |
20 |
| 9 |
31 |
20 |
32 |
40 |
| 9 |
50 |
60 |
80 |
100 |
| 9 |
60 |
70 |
90 |
110 |
| 9 |
75 |
83 |
103 |
123 |
| 10 |
0 |
10 |
16 |
20 |
| 10 |
31 |
20 |
32 |
40 |
| 10 |
50 |
60 |
80 |
100 |
| 10 |
60 |
70 |
90 |
110 |
| 10 |
75 |
83 |
103 |
123 |
|
|
Decisions with and without B_Line
|
Intuitive pricing
Off % in different periods: 0, 31, 31, 31, 31, 50, 50, 50, 50, 50
Sales ($): 9118
Profit ($): 3554
Optimal pricing (recommended by B_Line)
Off % in different periods: 0, 0, 0, 0, 0, 0, 0, 0, 0, 50
Sales ($): 10895
Profit ($): 5222
Percentage increase in profits (when optimal pricing is applied rather
than intuitive pricing): 47
|
Case 2 - Shorts
|
INPUT
|
Base Data
|
| Season length (weeks) |
9 |
| Number of decision periods |
3 |
| Purchase cost ($) |
12.3 |
Holding cost (5 of purchase cost /
unit / period) |
0 |
| Initial price ($) |
29.99 |
Number of price levels in each
period |
1,3,4 |
Permissible price levels (% off the
initial price) |
0, 33, 54, 66 |
| Initial inventory |
530 |
|
|
Demand Estimates
|
Period
Number |
Off
Percentage |
Minimum
(Numbers) |
Likely
(Numbers) |
Maximum
(Numbers) |
| 1 |
0 |
100 |
170 |
275 |
| 1 |
33 |
0 |
0 |
0 |
| 1 |
54 |
0 |
0 |
0 |
| 1 |
66 |
0 |
0 |
0 |
| 2 |
0 |
70 |
90 |
180 |
| 2 |
33 |
190 |
220 |
300 |
| 2 |
54 |
200 |
300 |
400 |
| 2 |
66 |
0 |
0 |
0 |
| 3 |
0 |
30 |
50 |
100 |
| 3 |
33 |
100 |
140 |
200 |
| 3 |
54 |
125 |
180 |
250 |
| 3 |
66 |
250 |
350 |
450 |
|
|
Decisions with and without B_Line
|
Intuitive pricing
Off % in different periods: 0, 0, 33
Sales ($): 11800
Profit ($): 5282
Optimal pricing (recommended by B_Line)
Off % in different periods: 0, 0, 33
Sales ($): 12370
Profit ($): 5931
Percentage increase in profits (when optimal pricing is applied rather
than intuitive pricing): 12
|
Case 3 - Suede Miniskirts
|
INPUT
|
Base Data
|
| Season length (weeks) |
12 |
| Number of decision periods |
3 |
| Purchase cost ($) |
18.42 |
Holding cost (5 of purchase cost /
unit / period) |
1 |
| Initial price ($) |
49.99 |
Number of price levels in each
period |
3, 3, 3 |
Permissible price levels (% off the
initial price) |
0, 25, 50 |
| Initial inventory |
342 |
|
|
Demand Estimates
|
Period
Number |
Off
Percentage |
Minimum
(Numbers) |
Likely
(Numbers) |
Maximum
(Numbers) |
| 1 |
0 |
60 |
80 |
120 |
| 1 |
25 |
80 |
100 |
150 |
| 1 |
50 |
120 |
160 |
180 |
| 2 |
0 |
72 |
100 |
120 |
| 2 |
25 |
100 |
120 |
160 |
| 2 |
50 |
140 |
200 |
220 |
| 3 |
0 |
40 |
60 |
72 |
| 3 |
25 |
50 |
72 |
90 |
| 3 |
50 |
70 |
100 |
110 |
|
|
Decisions with and without B_Line
|
Intuitive pricing
Off % in different periods: 0, 25, 50
Sales ($): 11436
Profit ($): 5061
Optimal pricing (recommended by B_Line)
Off % in different periods: 0, 0, 0
Sales ($): 12047
Profit ($): 5656
Percentage increase in profits (when optimal pricing is applied rather
than intuitive pricing): 11
|
Case 4 - Leggings
|
INPUT
|
Base Data
|
| Season length (weeks) |
12 |
| Number of decision periods |
3 |
| Purchase cost ($) |
11.00 |
Holding cost (5 of purchase cost /
unit / period) |
0 |
| Initial price ($) |
26.00 |
Number of price levels in each
period |
2, 3, 4 |
Permissible price levels (% off the
initial price) |
0, 24, 47, 62, 74 |
| Initial inventory |
485 |
|
|
Demand Estimates
|
Period
Number |
Off
Percentage |
Minimum
(Numbers) |
Likely
(Numbers) |
Maximum
(Numbers) |
| 1 |
0 |
45 |
60 |
80 |
| 1 |
24 |
60 |
75 |
100 |
| 1 |
47 |
0 |
0 |
0 |
| 1 |
62 |
0 |
0 |
0 |
| 1 |
74 |
0 |
0 |
0 |
| 2 |
0 |
45 |
60 |
80 |
| 2 |
24 |
60 |
75 |
100 |
| 2 |
47 |
100 |
150 |
190 |
| 2 |
62 |
0 |
0 |
0 |
| 2 |
74 |
0 |
0 |
0 |
| 3 |
0 |
0 |
0 |
0 |
| 3 |
24 |
60 |
75 |
100 |
| 3 |
47 |
100 |
150 |
190 |
| 3 |
62 |
170 |
250 |
300 |
| 3 |
74 |
220 |
300 |
350 |
|
|
Decisions with and without B_Line
|
Intuitive pricing
Off % in different periods: 0, 24, 62
Sales ($): 5523
Profit ($): 188
Optimal pricing (recommended by B_Line)
Off % in different periods: 0, 47, 62
Sales ($): 6000
Profit ($): 665
Percentage increase in profits (when optimal pricing is applied rather
than intuitive pricing): 253
|
Case 5 - Shirts
|
INPUT
|
Base Data
|
| Season length (weeks) |
12 |
| Number of decision periods |
3 |
| Purchase cost ($) |
12.30 |
Holding cost (5 of purchase cost /
unit / period) |
0 |
| Initial price ($) |
19.99 |
Number of price levels in each
period |
3, 3, 3 |
Permissible price levels (% off the
initial price) |
0, 30, 50 |
| Initial inventory |
275 |
|
|
Demand Estimates
|
Period
Number |
Off
Percentage |
Minimum
(Numbers) |
Likely
(Numbers) |
Maximum
(Numbers) |
| 1 |
0 |
40 |
60 |
80 |
| 1 |
30 |
80 |
100 |
130 |
| 1 |
50 |
150 |
170 |
200 |
| 2 |
0 |
50 |
70 |
80 |
| 2 |
30 |
100 |
120 |
150 |
| 2 |
50 |
150 |
170 |
200 |
| 3 |
0 |
10 |
30 |
40 |
| 3 |
30 |
30 |
50 |
60 |
| 3 |
50 |
50 |
70 |
90 |
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|
Decisions with and without B_Line
|
Intuitive pricing
Off % in different periods: 0, 30, 30
Sales ($): 3590
Profit ($): 195
Optimal pricing (recommended by B_Line)
Off % in different periods: 30, 30, 30
Sales ($): 3790
Profit ($): 410
Percentage increase in profits (when optimal pricing is applied rather
than intuitive pricing): 110
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