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Title: Pricing Analytics for Rotable Spare Parts
In this paper, we describe a comprehensive approach to pricing analytics for reusable resources in the context of rotable spare parts, which are parts that can be repeatedly repaired and resold. Working in collaboration with a major aircraft manufacturer, we aim to instill a new pricing culture and develop a scalable new pricing methodology. Pricing rotable spare parts presents unique challenges ranging from complex inventory dynamics and minimal demand information to limited data availability. We develop a novel pricing analytics approach that tackles all of these challenges and that can be applied across all rotable spare parts. We then describe a large-scale implementation of our approach with our industrial partner, which led to an improvement in profits of over 3.9% over a 10-month period.  more » « less
Award ID(s):
1763000
PAR ID:
10282275
Author(s) / Creator(s):
; ;
Date Published:
Journal Name:
INFORMS Journal on Applied Analytics
Volume:
50
Issue:
5
ISSN:
0092-2102
Page Range / eLocation ID:
313 to 324
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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