Computational Strategies for Inventory Liquidation

15 Pages Posted: 13 Dec 2016

See all articles by Gediminas Adomavicius

Gediminas Adomavicius

University of Minnesota - Twin Cities - Carlson School of Management

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management

Zach Sheffler

University of Minnesota - Twin Cities, Carlson School of Management, Students

Mochen Yang

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: December 11, 2015

Abstract

The area of inventory liquidation of consumer products has been revolutionized by retailers adopting direct-to-consumer approaches via the ecommerce stores and online auction sites (Bapna et al. 2009) enabled by advanced information technologies. For example, retailers such as Best Buy have liquidation stores on eBay, and sites such as uBid.com often liquidate previous generation electronics products. One of the key advantages of online platforms is the ability to consolidate inventories across stores and sell them to a wider consumer base that may not be accessible through traditional channels. The challenge of liquidating a large amount of consolidated inventory is in design of liquidation strategies (e.g., over what period of time the inventory should be liquidated and at what prices) given the uncertainty in product valuations. Computational approaches constitute a promising avenue toward either automating or providing support for managerial decision making in inventory liquidation settings.

Suggested Citation

Adomavicius, Gediminas and Gupta, Alok and Sheffler, Zach and Yang, Mochen, Computational Strategies for Inventory Liquidation (December 11, 2015). Available at SSRN: https://ssrn.com/abstract=2883863 or http://dx.doi.org/10.2139/ssrn.2883863

Gediminas Adomavicius (Contact Author)

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Zach Sheffler

University of Minnesota - Twin Cities, Carlson School of Management, Students ( email )

Minneapolis, MN
United States

Mochen Yang

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
117
Abstract Views
1,011
rank
319,374
PlumX Metrics