Dynamic Pricing for Optimizing Demand and Profitability

In this research project, a surcharge optimization algorithm will be developed to help the partner company to dynamically determine the premium charged for order pickup. The objective of the project is to smooth the demand curve for the order pickup timeslots: popular timeslots are congested, making it harder to deliver a positive experience, and other windows are idle, and overstaffed. In the project, large volumes of purchase history data including pickup and delivery “hot-spots”, historical pricing information, historical inventory, and shorts on pickup and delivery orders are to be utilized to determine the premium to be charged to improve both overall labor planning efficiency and customer experience.

Faculty Supervisor:

Roger Grosse


Jing Li


Loblaw Digital


Computer science


Service industry




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