Pricing and inventory cases

The New York Health Club case asked how to price personal training sessions. We built demand curves from members' survey answers on willingness to pay and simulated demand to find the best flat rate.

We then modelled peak and off-peak prices with a net-utility choice model, in which each member picks the option that leaves them the most value after price, and compared both approaches with pricing by customer segment.

This case asked whether particular items should be shipped directly from wholesalers, held in different distribution centres, or assembled differently.

We modelled three trade-offs: holding stock against paying more to a wholesaler, holding against shipping, and holding against assembly. Demand was modelled under both normal and discrete distributions. For each item we gave a recommendation and the characteristics of the item that led to it.