Browsing by Subject "Sales"

Now showing 1 - 9 of 9

Open Access
Aggregate profile clustering for telco analytics
(2013) Abbasoğlu, M.A.; Gedik, B.; Ferhatosmanoğlu H.
Many telco analytics require maintaining call profiles based on recent customer call patterns. Such call profiles are typically organized as aggregations computed at different time scales over the recent customer interactions. Customer call profiles are key inputs for analytics targeted at improving operations, marketing, and sales of telco providers. Many of these analytics require clustering customer call profiles, so that customers with similar calling patterns can be modeled as a group. Example applications include optimizing tariffs, customer segmentation, and usage forecasting. In this demo, we present our system for scalable aggregate profile clustering in a streaming setting. We focus on managing anonymized segments of customers for tariff optimization. Due to the large number of customers, maintaining profile clusters have high processing and memory resource requirements. In order to tackle this problem, we apply distributed stream processing. However, in the presence of distributed state, it is a major challenge to partition the profiles over machines (nodes) such that memory and computation balance is maintained, while keeping the clustering accuracy high. Furthermore, to adapt to potentially changing customer calling patterns, the partitioning of profiles to machines should be continuously revised, yet one should minimize the migration of profiles so as not to disturb the online processing of updates. We provide a re-partitioning technique that achieves all these goals. We keep micro-cluster summaries at each node, collect these summaries at a centralize node, and use a greedy algorithm with novel affinity heuristics to revise the partitioning. We present a demo that showcases our Storm and Hbase based implementation of the proposed solution in the context of a customer segmentation application. © 2013 VLDB Endowment.
Open Access
A branch-and-price algorithm for the vehicle routing problem with roaming delivery locations
(Elsevier Ltd, 2017) Ozbaygin G.; Ekin Karasan O.; Savelsbergh M.; Yaman, H.
We study the vehicle routing problem with roaming delivery locations in which the goal is to find a least-cost set of delivery routes for a fleet of capacitated vehicles and in which a customer order has to be delivered to the trunk of the customer's car during the time that the car is parked at one of the locations in the (known) customer's travel itinerary. We formulate the problem as a set-covering problem and develop a branch-and-price algorithm for its solution. The algorithm can also be used for solving a more general variant in which a hybrid delivery strategy is considered that allows a delivery to either a customer's home or to the trunk of the customer's car. We evaluate the effectiveness of the many algorithmic features incorporated in the algorithm in an extensive computational study and analyze the benefits of these innovative delivery strategies. The computational results show that employing the hybrid delivery strategy results in average cost savings of nearly 20% for the instances in our test set. © 2017 Elsevier Ltd
Open Access
Multi-item quick response system with budget constraint
(2012) Serel, D. A.
Quick response mechanisms based on effective use of up-to-date demand information help retailers to reduce their inventory management costs. We formulate a single-period inventory model for multiple products with dependent (multivariate normal) demand distributions and a given overall procurement budget. After placing orders based on an initial demand forecast, new market information is gathered and demand forecast is updated. Using this more accurate second forecast, the retailer decides the total stocking level for the selling season. The second order is based on an improved demand forecast, but it also involves a higher unit supply cost. To determine the optimal ordering policy, we use a computational procedure that entails solving capacitated multi-item newsboy problems embedded within a dynamic programming model. Various numerical examples illustrate the effects of demand variability and financial constraint on the optimal policy. It is found that existence of a budget constraint may lead to an increase in the initial order size. It is also observed that as the budget available decreases, the products with more predictable demand make up a larger share of the procurement expenditure.
Open Access
Non-linear pricing by convex duality
(Elsevier, 2015) Pınar, M. Ç.
We consider the pricing problem of a risk-neutral monopolist who produces (at a cost) and offers an infinitely divisible good to a single potential buyer that can be of a finite number of (single dimensional) types. The buyer has a non-linear utility function that is differentiable, strictly concave and strictly increasing. Using a simple reformulation and shortest path problem duality as in Vohra (2011) we transform the initial non-convex pricing problem of the monopolist into an equivalent optimization problem yielding a closed-form pricing formula under a regularity assumption on the probability distribution of buyer types. We examine the solution of the problem when the regularity condition is relaxed in different ways, or when the production function is non-linear and convex. For arbitrary type distributions, we offer a complete solution procedure.
Open Access
Predicting optimal facility location without customer locations
(ACM, 2017-08) Yilmaz, Emre; Elbaşı, Sanem; Ferhatosmanoğlu, Hakan
Deriving meaningful insights from location data helps businesses make better decisions. One critical decision made by a business is choosing a location for its new facility. Optimal location queries ask for a location to build a new facility that optimizes an objective function. Most of the existing works on optimal location queries propose solutions to return best location when the set of existing facilities and the set of customers are given. However, most businesses do not know the locations of their customers. In this paper, we introduce a new problem setting for optimal location queries by removing the assumption that the customer locations are known. We propose an optimal location predictor which accepts partial information about customer locations and returns a location for the new facility. The predictor generates synthetic customer locations by using given partial information and it runs optimal location queries with generated location data. Experiments with real data show that the predictor can find the optimal location when sufficient information is provided. © 2017 Copyright held by the owner/author(s).
Open Access
Purchase order finance: a conceptual model with economic insights
(Now Publishers Inc, 2017) Tanrisever, Fehmi; Van Bergen, M.; Reindorp, M.
Purchase Order (PO) finance is a form of financial intermediation which can alleviate capital constraints in certain supply chains. PO finance is typically utilized by small and medium-sized enterprises (SMEs) that operate as importers, exporters, wholesalers, or distributors and have high sales growth. When applicable, PO finance creates value for the supply chain by providing capital that is not available through regular lending channels, due to informational problems. We provide a conceptual model that clarifies the value proposition of PO finance and describe how the transactions are carried out in practice. The conceptual model allows us to highlight the settings where economic conditions will favor the application of PO finance.
Open Access
SPL: an extensible language for distributed stream processing
(Association for Computing Machinery, 2017) Hirzel M.; Schneider S.; Gedik, B.
Big data is revolutionizing how all sectors of our economy do business, including telecommunication, transportation, medical, and finance. Big data comes in two flavors: data at rest and data in motion. Processing data in motion is stream processing. Stream processing for big data analytics often requires scale that can only be delivered by a distributed system, exploiting parallelism on many hosts and many cores. One such distributed stream processing system is IBM Streams. Early customer experience with IBM Streams uncovered that another core requirement is extensibility, since customers want to build high-performance domain-specific operators for use in their streaming applications. Based on these two core requirements of distribution and extensibility, we designed and implemented the Streams Processing Language (SPL). This article describes SPL with an emphasis on the language design, distributed runtime, and extensibility mechanism. SPL is now the gateway for the IBM Streams platform, used by our customers for stream processing in a broad range of application domains. © 2017 ACM.
Open Access
Supporting hurricane inventory management decisions with consumer demand estimates
(Elsevier B.V., 2016) Morrice, D. J.; Cronin, P.; Tanrisever, F.; Butler, J. C.
Matching supply and demand can be very challenging for anyone attempting to provide goods or services during the threat of a natural disaster. In this paper, we consider inventory allocation issues faced by a retailer during a hurricane event and provide insights that can be applied to humanitarian operations during slow-onset events. We start with an empirical analysis using regression that triangulates three sources of information: a large point-of-sales data set from a Texas Gulf Coast retailer, the retailer's operational and logistical constraints, and hurricane forecast data from the National Hurricane Center (NHC). We establish a strong association between the timing of the hurricane weather forecast, the forecasted landfall position of the storm, and hurricane sales. Storm intensity is found to have a weaker association on overall inventory decisions. Using the results of the empirical analysis and the NHC forecast data, we construct a state-space model of demand during the threat of a hurricane and develop an inventory management model to satisfy consumer demand prior to a hurricane making landfall. Based on the structure of the problem, we model this situation as a two-stage, two-location inventory allocation model from a centralized distribution center that balances transportation, shortage and holding costs. The model is used to explore the role of recourse, i.e., deferring part of the inventory allocation until observing the state of the hurricane as it moves towards landfall. Our approach provides valuable insights into the circumstances under which recourse may or may not be worthwhile in any setting where an anticipated extreme event drives consumer demand.
Unknown
Time constrained maximal covering salesman problem with weighted demands and partial coverage
(Elsevier Ltd, 2016) Ozbaygin, G.; Yaman, H.; Karasan, O. E.
In a routing framework, it may not be viable to visit every single customer separately due to resource limitations or efficiency concerns. In such cases, utilizing the notion of coverage; i.e., satisfying the demand of multiple customers by visiting a single customer location, may be advantageous. With this motivation, we study the time constrained maximal covering salesman problem (TCMCSP) in which the aim is to find a tour visiting a subset of customers so that the amount of demand covered within a limited time is maximized. We provide flow and cut formulations and derive valid inequalities. Since the connectivity constraints and the proposed valid inequalities are exponential in the size of the problem, we devise different branch-and-cut schemes. Computational experiments performed on a set of problem instances demonstrate the effectiveness of the proposed valid inequalities in terms of strengthening the linear relaxation bounds as well as speeding up the solution procedure. Moreover, the results indicate the superiority of using a branch-and-cut methodology over a flow-based formulation. Finally, we discuss the relation between the problem parameters and the structure of optimal solutions based on the results of our experiments. © 2016 Elsevier Ltd