Sales Effort Management Under All-or-Nothing Constraint

نویسندگان

چکیده

We consider a sales effort management problem under an all-or-nothing constraint. The seller will receive no bonus/revenue if the volume fails to reach predetermined target at end of horizon. Throughout horizon, process can be moderated by through costly effort. show that optimal rate is nonmonotonic with respect remaining time or outstanding required target. Generally, it has watershed structure, such for any needed volume, there exists cutoff point on above which decreases in and below increases time. then study easy-to-compute heuristics implemented efficiently. start static heuristic derived from deterministic analog stochastic problem. With constraint, we performance hinges how profit-maximizing fares against rate, defined as divided length When higher than adopting asymptotically negligible loss. On other hand, when lower loss order greater square root scale parameter. To address poor latter case, propose modified resolving achieves logarithmic This paper was accepted Gabriel Weintraub, revenue market analytics.

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ژورنال

عنوان ژورنال: Management Science

سال: 2022

ISSN: ['0025-1909', '1526-5501']

DOI: https://doi.org/10.1287/mnsc.2021.4142