Unlock the power of data-driven pricing optimization for your business in retail, e-commerce, ticketing, and hospitality industries. Striking the right balance between price and demand is a challenge, but data scientists have made significant strides. However, a crucial piece is often overlooked—making the ideal pricing decision while navigating various constraints and business rules.

Imagine having a product with multiple categories but limited space—whether it’s shelf space in retail, event seats, or hotel rooms. This is where our solution comes into play. We tackle the challenge of optimizing the mix of products within a constrained space and maximizing revenue while adhering to business rules.

This modeling example involves creating a predictive model to forecast sales based on product prices, then we build an optimization model to identify the optimal product mix. Leveraging the Gurobi-sponsored open-source package Gurobi Machine Learning, we seamlessly integrate machine learning features with decision-making in the optimization model.

This modeling tutorial is at the beginner level, where we assume that you know Python and that you have a background in a discipline that uses quantitative methods.

You may find it helpful to refer to the documentation of the Gurobi Python API.

Access the Jupyter Notebook Modeling Example

Click on the button below to access the example in Google Colab, which is a free, online Jupyter Notebook environment that allows you to write and execute Python code through your browser. 

How to Run the Jupyter Notebook Modeling Example

  • To run the example the first time, choose “Runtime” and then click “Run all”.
  • All the cells in the Jupyter Notebook will be executed.
  • The example will install the gurobipy package, which includes a limited Gurobi license that allows you to solve small models.
  • You can also modify and re-run individual cells.
  • For subsequent runs, choose “Runtime” and click “on “Restart and run all”.
  • The Gurobi Optimizer will find the optimal solution of the modeling example.

Check out the Colab Getting Started Guide for full details on how to use Colab Notebooks as well as create your own.

Try Gurobi for Free

Choose the evaluation license that fits you best, and start working with our Expert Team for technical guidance and support.

Evaluation License
Get a free, full-featured license of the Gurobi Optimizer to experience the performance, support, benchmarking and tuning services we provide as part of our product offering.
Academic License
Gurobi supports the teaching and use of optimization within academic institutions. We offer free, full-featured copies of Gurobi for use in class, and for research.
Cloud Trial

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