pricing and bidding.
Set prices or market bids across products, channels and time. Account for how demand responds, for inventory or capacity, and for business rules such as minimum margins.
Which prices or bids, across products, channels or markets, give the best margin within the rules we have to keep?
Pricing is a quadratic program when demand responds linearly to price. Discrete price points, bid steps or a demand curve in linear pieces make it a mixed-integer program. kint estimates the demand response with machine learning and hands it to the optimization model.
where pricing and bidding gets hard.
Demand does not fall in a straight line as price rises. The curve bends and shifts with competition, season and customer segment.
The price of one product changes sales of others. Across a large range these effects form a dense web.
Real price lists and market bids use fixed steps. That turns a smooth problem into a combinatorial one.
from the rules to the bound.
kint's decision agent writes the model from the planners' description. In the pilot, kint's forward deployed engineers review it with the experts. Then the solver does this.
estimate the demand response
Models learn from your history how demand reacts to price, competitor moves and season.
formulate the pricing model
Prices or bids become variables. Margin floors, channel rules and market rules become constraints.
solve with QP or MIP
Quadratic programming for continuous prices, mixed-integer programming for price points, bid steps and curved demand.
re-optimise on new data
New sales figures, market data or inventory levels trigger a new run on the schedule you set.
a pricing and bidding plan, with its reasons.
Below are the parts of a pricing and bidding result. Planners check them before the plan is released.
the anatomy of an answer- planA price or bid per product, channel or market interval.
- binding limitFor example: the minimum margin rule on one channel caps the result, not the demand.
- sensitivityWhat relaxing that rule by one step would add in margin.
- bound and gapBound and gap, stored with the run and the demand model version.
- recordData version, model version, who reviewed the model and who released the plan.
bring us this decision.
Bring one recurring pricing and bidding decision with its rules and data. Your planners get a first model they can read.
- Results
- Plan, binding limit, sensitivity, bound and gap, record
- Data centres
- Operated in Germany, or in yours
- all problem types
- routes, schedules, stock and price
- Contact
- hello@kint.pro