Optimization of product price with the use of the category management theory

Abstract

Introduction. The problem of effective management of the assortment of the enterprise in the competitive environment will always remain actual. The application of the theory of category management is recognized to be the modern trend in its decision. The research is directed on demonstration of opportunities of economic-mathematical modeling of processes of pricing on various groups of goods according to approaches of category management.

Purpose. The aim of the article is to determine the price of production by methods of economic-mathematical modeling on the basis of the theory of category management.

The method (methodology). For achievement of a research problem the following methods are used: a method of k-means (the cluster analysis), Foster-Stuart method (verification of a trend), a method of decomposition of the time series (allocation of a trend and seasonal components) and the conjugate gradient method (nonlinear optimizing model solving).

Results. As a result of research the optimal prices of medicines of the chosen group are determined. It will allow to increase the income from sale of these medicines up to 14,5 %. The research results can be used in activity of both trade, and manufacturing enterprises.