The Impact of Linear Optimization on Promotion Planning

Maxime C. Cohen
Maxime C. Cohen
[email protected]
Stern School of Business, New York University, New York, New York 10012
Search for more papers by this author
,
Ngai-Hang Zachary Leung
Ngai-Hang Zachary Leung
[email protected]
College of Business, City University of Hong Kong, Kowloon, Hong Kong
Search for more papers by this author
,
Kiran Panchamgam
Kiran Panchamgam
[email protected]
Oracle Retail Global Business Unit (RGBU), Burlington, Massachusetts 01803
Search for more papers by this author
,
Georgia Perakis
Corresponding Author
Georgia Perakis
[email protected]
Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139
Search for more papers by this author
,
Anthony Smith
Anthony Smith
[email protected]
Oracle RGBU, Burlington, Massachusetts 01803
Search for more papers by this author

Maxime C. Cohen

[email protected]

Stern School of Business, New York University, New York, New York 10012

Search for more papers by this author

Ngai-Hang Zachary Leung

[email protected]

College of Business, City University of Hong Kong, Kowloon, Hong Kong

Search for more papers by this author

Kiran Panchamgam

[email protected]

Oracle Retail Global Business Unit (RGBU), Burlington, Massachusetts 01803

Search for more papers by this author

Georgia Perakis

Corresponding Author

Georgia Perakis

[email protected]

Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139

Search for more papers by this author

Anthony Smith

[email protected]

Oracle RGBU, Burlington, Massachusetts 01803

Search for more papers by this author

Published Online:19 Jan 2017https://doi.org/10.1287/opre.2016.1573

Supplemental Material

opre.2016.1573-sm.pdf (490 KB)

Cited by
- Data‐driven robust multiproduct pricing with fairness concerns
  5 February 2025 | International Transactions in Operational Research, Vol. 33, No. 5
- Artificial intelligence for optimization: Unleashing the potential of parameter generation, model formulation, and solution methods
  European Journal of Operational Research, Vol. 332, No. 1
- On solving nonsmooth retail portfolio maximization problems using active signature methods
  13 November 2025 | Computational Management Science, Vol. 23, No. 1
- Data-Driven Pricing for Availability-Based Upgrades Under a Multiple Binary Choice Model with Copula
  Övünç Yılmaz,
  Farbod Ekbatani,
  Zifeng Zhao,
  Ruxian Wang,
  Andrew Vakhutinsky
  25 May 2026 | Manufacturing & Service Operations Management, Vol. 0, No. 0
- OM Forum—Supply Chain Management in the AI Era: A Vision Statement from the Operations Management Community
  Maxime C. Cohen,
  Tinglong Dai,
  Georgia Perakis,
  Narendra Agrawal,
  Gad Allon,
  Robert N. Boute,
  Gérard P. Cachon,
  Zhe Chen,
  Morris Cohen,
  Rares Cristian,
  Vinayak Deshpande,
  Francis de Véricourt,
  Jan C. Fransoo,
  Joren Gijsbrechts,
  Pavithra Harsha,
  Ming Hu,
  Pınar Keskinocak,
  Caleb Kwon,
  Hau Lee,
  Sheng Liu,
  Konstantina Mellou,
  Ishai Menache,
  Jason Miller,
  Serguei Netessine,
  Tava Lennon Olsen,
  Jeevan Pathuri,
  Robert Peels,
  Yongzhi Qi,
  Ananth Raman,
  Anne Robinson,
  Zuo-Jun Max Shen,
  Masha Shunko,
  David Simchi-Levi,
  Hannah Smalley,
  Jing-Sheng Song,
  Jayashankar M. Swaminathan,
  Christopher Tang,
  Sridhar Tayur,
  Maxi Udenio,
  Jan Van Mieghem,
  Yuqian Xu,
  Dennis Zhang
  26 March 2026 | Manufacturing & Service Operations Management, Vol. 28, No. 3
- Optimal Feature-Based Market Segmentation and Pricing
  Titing Cui,
  Michael L. Hamilton
  10 February 2026 | Operations Research, Vol. 74, No. 3
- Proxy-Aided Demand Learning with an Application to Various Pricing Problems
  Tao Shen,
  Yifan Cui
  13 November 2025 | Operations Research, Vol. 74, No. 2
- Data-Driven Capacity Management of Ride-Hailing Service with Prescriptive Analytics and Deep Learning
  Xiang Li,
  Kun Jin,
  Hongguang Ma,
  Ziyan Feng,
  Yusen Xia
  9 February 2026 | INFORMS Journal on Computing, Vol. 0, No. 0
- Cross-Platform Spillover Effect of Promotion: Evidence from the PC Game Market
  22 January 2026 | Production and Operations Management, Vol. 68
- Retail Platform Analytics: Practice, Literature, and Future Research
  17 April 2024 | Production and Operations Management, Vol. 35, No. 1
- PERSONA — A Two-Phase, Customer-centric Promotion Optimization Framework for E-commerce Retail
  23 April 2026
- Generating and Optimizing What-If Scenarios Using a Transformers-Based Forecasting Model
- Incorporating Promotional Effects in Sales Planning of the Retail Industry Using Geometric Programming
  Melika Khandan,
  Pooya Hoseinpour
  25 November 2024 | INFORMS Journal on Computing, Vol. 37, No. 5
- Data-Driven Clustering and Feature-Based Retail Electricity Pricing with Smart Meters
  N. Bora Keskin,
  Yuexing Li,
  Nur Sunar
  3 September 2024 | Operations Research, Vol. 73, No. 5
- Instrumenting While Experimenting: An Empirical Method for Competitive Pricing at Scale
  Zhaohui (Zoey) Jiang,
  Jun Li
  26 March 2025 | Operations Research, Vol. 73, No. 5
- Personalized Pricing of an e‐Tailer in the Presence of Identity Management
  15 March 2025 | Managerial and Decision Economics, Vol. 46, No. 5
- Grid-based market sales forecasting for retail businesses using automated machine learning and geospatial intelligence
  Expert Systems with Applications, Vol. 284
- Research on the spillover effects of promotion preannouncements on other selling products within and across brands
  21 November 2024 | Asia Pacific Journal of Marketing and Logistics, Vol. 37, No. 6
- TFT-MPIR: An end-to-end multi-period inventory replenishment strategy based on temporal fusion transformer
  Expert Systems with Applications, Vol. 261
- Linear programming
- Optimizing Supply Chain Management in the Medical Field Through Demand Forecasting and Customer Segmentation
- Behavioral Retail Operations: Tactics to Win Customers
  11 November 2024 | Foundations and Trends® in Technology, Information and Operations Management, Vol. 18, No. 3-4
- Forecasting using reference prices with exposure effect
  22 April 2024 | Naval Research Logistics (NRL), Vol. 71, No. 7
- A practical and robust approach for solving the multi‐compartment vehicle routing problem under demand uncertainty using machine learning
  14 June 2024 | Networks, Vol. 84, No. 3
- Coordination in Multibrand, Multimedia Advertising: Is It Always a Good Thing?
  Wangsheng Zhu,
  Subodha Kumar,
  Vijay Mookerjee
  24 August 2023 | Information Systems Research, Vol. 35, No. 3
- Prediction-led prescription: Optimal Decision-Making in times of turbulence and business performance improvement
  Journal of Business Research, Vol. 182
- Using AI to detect panic buying and improve products distribution amid pandemic
  15 April 2023 | AI & SOCIETY, Vol. 39, No. 4
- Application of Artificial Intelligence to Enhance Business Intelligence for Increasing Customer Involvement in FMCG Industry
- Predictably Unpredictable? How Judgmental and Machine Learning Forecasts Complement Each Other
  23 April 2024 | Production and Operations Management, Vol. 33, No. 5
- Price promotion optimization model for multiperiod planning: a case study of beauty category products sold in a convenience store chain
  17 August 2023 | Journal of Revenue and Pricing Management, Vol. 23, No. 2
- Debiasing In-Sample Policy Performance for Small-Data, Large-Scale Optimization
  Vishal Gupta,
  Michael Huang,
  Paat Rusmevichientong
  1 November 2022 | Operations Research, Vol. 72, No. 2
- Big data applications in food supply chains
- Model-Free Assortment Pricing with Transaction Data
  Ningyuan Chen,
  Andre A. Cire,
  Ming Hu,
  Saman Lagzi
  16 January 2023 | Management Science, Vol. 69, No. 10
- A novel multi-phase hierarchical forecasting approach with machine learning in supply chain management
  Supply Chain Analytics, Vol. 3
- Frontiers in Service Science: Data-Driven Revenue Management: The Interplay of Data, Model, and Decisions
  Ningyuan Chen,
  Ming Hu
  10 March 2023 | Service Science, Vol. 15, No. 2
- Supply Chain Demand Forecasting and Price Optimisation Models with Substitution Effect
  29 May 2023 | Mathematics, Vol. 11, No. 11
- High-Low Promotion Policies for Peak-End Demand Models
  Tamar Cohen-Hillel,
  Kiran Panchamgam,
  Georgia Perakis
  8 August 2022 | Management Science, Vol. 69, No. 4
- Dynamic pricing and inventory control of online retail of fresh agricultural products with forward purchase behavior
  9 March 2023 | Economic Research-Ekonomska Istraživanja, Vol. 36, No. 1
- Robust Pricing and Production with Information Partitioning and Adaptation
  Georgia Perakis,
  Melvyn Sim,
  Qinshen Tang,
  Peng Xiong
  21 July 2022 | Management Science, Vol. 69, No. 3
- Optimizing Stock-Keeping Unit Selection for Promotional Display Space at Grocery Retailers
  14 February 2023
- The Influence Mechanism of Customer Review Manipulation on Competitive Pricing Decision-Making: Empirical and Theoretical Analysis
  1 January 2023 | SSRN Electronic Journal, Vol. 31
- Boosting Store Sales Through Machine Learning-Informed Promotional Decisions
  1 January 2023 | SSRN Electronic Journal, Vol. 36
- Promotion Optimization for UK Online Retailer
  1 January 2023 | SSRN Electronic Journal, Vol. 31
- Uncertain KOL selection with advertising videos circulation and KOL selection diversification in advertising promotion
  Journal of Industrial and Management Optimization, Vol. 19, No. 2
- Data Aggregation and Demand Prediction
  Maxime C. Cohen,
  Renyu Zhang,
  Kevin Jiao
  7 July 2022 | Operations Research, Vol. 70, No. 5
- A Comparative Empirical Study of Discrete Choice Models in Retail Operations
  Gerardo Berbeglia,
  Agustín Garassino,
  Gustavo Vulcano
  1 December 2021 | Management Science, Vol. 68, No. 6
- Real-Time Delivery Time Forecasting and Promising in Online Retailing: When Will Your Package Arrive?
  Nooshin Salari,
  Sheng Liu,
  Zuo-Jun Max Shen
  24 February 2022 | Manufacturing & Service Operations Management, Vol. 24, No. 3
- Frustration-Based Promotions: Field Experiments in Ride-Sharing
  Maxime C. Cohen,
  Michael D. Fiszer,
  Baek Jung Kim
  31 August 2021 | Management Science, Vol. 68, No. 4
- Smart “Predict, then Optimize”
  Adam N. Elmachtoub,
  Paul Grigas
  12 March 2021 | Management Science, Vol. 68, No. 1
- Conclusion and Advanced Topics
  1 January 2022
- Data-driven optimization technologies for MaaS
- Optimal promotion planning for a product launch in the presence of word-of-mouth
  Journal of Retailing and Consumer Services, Vol. 64
- Predictably unpredictable: How judgmental and machine learning forecasts complement each other
  SSRN Electronic Journal, Vol. 23
- Instrumenting While Experimenting: An Empirical Method for Competitive Pricing at Scale
  SSRN Electronic Journal, Vol. 18
- Utilising Machine Learning Approaches to Develop Price Optimisation and Demand Prediction Model for Multiple Products with Demand Correlation
  SSRN Electronic Journal, Vol. 65
- Optimal Feature-Based Market Segmentation and Pricing
  SSRN Electronic Journal, Vol. 25
- Customer-driven Bundle Promotion Optimization at Scale
  SSRN Electronic Journal, Vol. 69
- Joint In-Season and Out-of-Season Promotion Demand Forecasting in a Retail Environment
  Journal of Retailing, Vol. 97, No. 4
- The Value of Personalized Pricing
  Adam N. Elmachtoub,
  Vishal Gupta,
  Michael L. Hamilton
  5 April 2021 | Management Science, Vol. 67, No. 10
- A mixture varying-gain dynamic learning network for solving nonlinear and nonconvex constrained optimization problems
  Neurocomputing, Vol. 456
- Revenue Management and the Rise of the Algorithmic Economy
  Ilan Lobel
  14 September 2020 | Management Science, Vol. 67, No. 9
- Demand Estimation Under the Multinomial Logit Model from Sales Transaction Data
  Tarek Abdallah,
  Gustavo Vulcano
  9 October 2020 | Manufacturing & Service Operations Management, Vol. 23, No. 5
- Is Investment in Data Analytics Always Profitable? The Case of Third‐Party‐Online‐Promotion Marketplace
  1 July 2021 | Production and Operations Management, Vol. 30, No. 7
- Promotion Optimization for Multiple Items in Supermarkets
  Maxime C. Cohen,
  Jeremy J. Kalas,
  Georgia Perakis
  8 June 2020 | Management Science, Vol. 67, No. 4
- A Simple Rule for Pricing with Limited Knowledge of Demand
  Maxime C. Cohen,
  Georgia Perakis,
  Robert S. Pindyck
  29 June 2020 | Management Science, Vol. 67, No. 3
- Data‐Driven Approaches to Targeting Promotion E‐mails: The Case of Delayed Incentives
  1 March 2021 | Production and Operations Management, Vol. 30, No. 3
- Bibliography
  12 March 2021
- Model-Free Assortment Pricing with Transaction Data
  SSRN Electronic Journal, Vol. 66
- Debiasing In-Sample Policy Performance for Small-Data, Large-Scale Optimization
  SSRN Electronic Journal, Vol. 65
- Frontiers in Service Science: The Management of Data Analytics Services: New Challenges and Future Directions
  Francis de Véricourt,
  Georgia Perakis
  20 November 2020 | Service Science, Vol. 12, No. 4
- Discussion of “Best Subset, Forward Stepwise or Lasso? Analysis and Recommendations Based on Extensive Comparisons”
  Statistical Science, Vol. 35, No. 4
- An Efficient Algorithm for Dynamic Pricing Using a Graphical Representation
  1 October 2020 | Production and Operations Management, Vol. 29, No. 10
- Data-Driven Promotion Planning for Paid Mobile Applications
  Manqi (Maggie) Li,
  Yan Huang,
  Amitabh Sinha
  27 August 2020 | Information Systems Research, Vol. 31, No. 3
- Optimization of Tree Ensembles
  Velibor V. Mišić
  7 July 2020 | Operations Research, Vol. 68, No. 5
- Risk-Based Loan Pricing: Portfolio Optimization Approach with Marginal Risk Contribution
  So Yeon Chun,
  Miguel A. Lejeune
  27 February 2020 | Management Science, Vol. 66, No. 8
- How to Promote Sales: Discount Promotion or Coupon Promotion?
  3 July 2020 | Journal of Systems Science and Systems Engineering, Vol. 29, No. 4
- Technical Note—Dynamic Pricing with Heterogeneous Patience Levels
  Ilan Lobel
  21 May 2020 | Operations Research, Vol. 68, No. 4
- Optimizing stock‐keeping unit selection for promotional display space at grocery retailers
  17 December 2019 | Journal of Operations Management, Vol. 66, No. 5
- The Long-term and Spillover Effects of Price Promotions on Retailing Platforms: Evidence from a Large Randomized Experiment on Alibaba
  Dennis J. Zhang,
  Hengchen Dai,
  Lingxiu Dong,
  Fangfang Qi,
  Nannan Zhang,
  Xiaofei Liu,
  Zhongyi Liu,
  Jiang Yang
  11 September 2019 | Management Science, Vol. 66, No. 6
- Integrated sales and operations planning with multiple products: Jointly optimizing the number and timing of promotions and production decisions
  Applied Mathematical Modelling, Vol. 80
- Machine learning and operation research based method for promotion optimization of products with no price elasticity history
  Electronic Commerce Research and Applications, Vol. 40
- Data Analytics in Operations Management: A Review
  Velibor V. Mišić,
  Georgia Perakis
  19 September 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- Behavioral Operations: Past, Present, and Future
  Karen Donohue,
  Özalp Özer,
  Yanchong Zheng
  19 September 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- Optimizing Promotions for Multiple Items in Supermarkets
  15 December 2019
- Gradient Boosting and Deep Learning Models Approach to Forecasting Promotions Efficiency in FMCG Retail
  7 October 2020
- Estimating the Performance Indicators of Promotion Efficiency in FMCG Retail
  20 November 2020
- Data-Driven Scalable E-commerce Transportation Network Design with Unknown Flow Response
  SSRN Electronic Journal, Vol. 17
- Data-driven Clustering and Feature-based Retail Electricity Pricing with Smart Meters
  SSRN Electronic Journal, Vol. 25
- Real-Time Delivery Time Forecasting and Promising in Online Retailing: When Will Your Package Arrive?
  SSRN Electronic Journal, Vol. 17
- Data Analytics to Detect Panic Buying and Improve Products Distribution Amid Pandemic
  SSRN Electronic Journal, Vol. 20
- A multi-stage method for joint pricing and inventory model with promotion constrains
  Discrete and Continuous Dynamical Systems - S, Vol. 13, No. <![CDATA[6]]>
- LORE
  10 September 2019
- A “hidden” side of consumer grocery shopping choice
  Journal of Retailing and Consumer Services, Vol. 48
- Scheduling Promotion Vehicles to Boost Profits
  Lennart Baardman,
  Maxime C. Cohen,
  Kiran Panchamgam,
  Georgia Perakis,
  Danny Segev
  6 April 2018 | Management Science, Vol. 65, No. 1
- Dynamic Pricing Over Finite Horizons
  15 August 2019
- Use of Data Science for Promotion Optimization in Convenience Chain
  17 December 2019
- How price promotions work: A review of practice and theory
- Machine Learning in Predicting Demand for Fast-Moving Consumer Goods: An Exploratory Research
  IFAC-PapersOnLine, Vol. 52, No. 13
- Data Analytics in Operations Management: A Review
  SSRN Electronic Journal, Vol. 17
- Data Driven Forecasting and Revenue Management with Exposure Dependent Reference Prices
  SSRN Electronic Journal, Vol. 10
- Data Aggregation and Demand Prediction
  SSRN Electronic Journal, Vol. 3086237
- The Value of Personalized Promotion: Field Experiment on O2O Platform
  SSRN Electronic Journal, Vol. 24
- How Do Price Promotions Affect Customer Behavior on Retailing Platforms? Evidence from a Large Randomized Experiment on Alibaba
  1 December 2018 | Production and Operations Management, Vol. 27, No. 12
- Competition-Based Dynamic Pricing in Online Retailing: A Methodology Validated with Field Experiments
  Marshall Fisher,
  Santiago Gallino,
  Jun Li
  27 June 2017 | Management Science, Vol. 64, No. 6
- Robust Dynamic Pricing with Two Substitutable Products
  Ming Chen,
  Zhi-Long Chen
  14 November 2017 | Manufacturing & Service Operations Management, Vol. 20, No. 2
- Joint Dynamic Pricing and Order Fulfillment for E-commerce Retailers
  Yanzhe (Murray) Lei,
  Stefanus Jasin,
  Amitabh Sinha
  27 March 2018 | Manufacturing & Service Operations Management, Vol. 20, No. 2
- Randomized Markdowns and Online Monitoring
  Ken Moon,
  Kostas Bimpikis,
  Haim Mendelson
  17 February 2017 | Management Science, Vol. 64, No. 3
- The Value of Personalized Pricing
  SSRN Electronic Journal, Vol. 19
- A Comparative Empirical Study of Discrete Choice Models in Retail Operations
  SSRN Electronic Journal, Vol. 64
- Online Learning and Optimization of (Some) Cyclic Pricing Policies for Revenue Management with Patient Customers
  SSRN Electronic Journal, Vol. 55
- Promotion Optimization in Retail
  SSRN Electronic Journal, Vol. 55
- Joint Pricing and Production: A Fusion of Machine Learning and Robust Optimization
  SSRN Electronic Journal, Vol. 107
- An integrated platform for intuitive mathematical programming modeling using LaTeX
  10 September 2018 | PeerJ Computer Science, Vol. 4
- How Does Dynamic Pricing Affect Customer Behavior on Retailing Platforms? Evidence from a Large Randomized Experiment on Alibaba
  SSRN Electronic Journal, Vol. 23
- Optimizing Promotions for Multiple Items in Supermarkets
  SSRN Electronic Journal, Vol. 55
- Leveraging Comparables for New Product Sales Forecasting
  SSRN Electronic Journal, Vol. 36
- Data-Driven Promotion Planning for Mobile Applications
  SSRN Electronic Journal, Vol. 48
- Dynamic Joint Pricing and Order Fulfillment for E-Commerce Retailers
  SSRN Electronic Journal, Vol. 17
- An Efficient Algorithm for Dynamic Pricing Using a Graphical Representation
  SSRN Electronic Journal, Vol. 14
- Risk-Based Loan Pricing: Portfolio Optimization Approach with Marginal Risk Contribution
  SSRN Electronic Journal, Vol. 89
- Competition-Based Dynamic Pricing in Online Retailing: A Methodology Validated with Field Experiments
  SSRN Electronic Journal, Vol. 63
- Scheduling Promotion Vehicles to Boost Pro fits
  SSRN Electronic Journal, Vol. 237
- Pricing with Limited Knowledge of Demand
  SSRN Electronic Journal, Vol. 107

Volume 65, Issue 2

March-April 2017

Pages ii-iv, 289-555

Article Information

Supplemental Material

Metrics

Information

Received:January 20, 2014
Accepted:September 23, 2016
Published Online:January 19, 2017

Cite as

Maxime C. Cohen, Ngai-Hang Zachary Leung, Kiran Panchamgam, Georgia Perakis, Anthony Smith (2017) The Impact of Linear Optimization on Promotion Planning. Operations Research 65(2):446-468.

https://doi.org/10.1287/opre.2016.1573

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

The Impact of Linear Optimization on Promotion Planning

Supplemental Material

Volume 65, Issue 2

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News