Rue La La Discusses Revenue Management Challenges and MIT Pricing Optimization Tool

Rue La La’s use of the new price-optimization application is an example of how analytics can change the way a company operates. We started this project with the goal of reducing inventory, and ended up with a cutting-edge, demand-shaping application that has a tremendous impact on the retailer’s bottom line,” says David Simchi-Levi, a professor of civil and environmental engineering and engineering systems, and co-chair of the Accenture and MIT Alliance in Business Analytics.

Rue La La Expects 10 Percent Increase in Revenue

Murali Narayanaswamy, vice president of pricing and operations strategy at Rue La La, says, “This research project fundamentally changed our business. After implementing these analytics techniques, we’re expecting an increase in revenue of more than 10 percent with little impact on demand.”

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