Developed and Impacted an Algorithm to Determine the Optimal Commission for Inventory Management for an e-marketplace with Multiple Independent Retailers

The importance of inventory management has been progressively growing alongside the expansion and sophistication of businesses. However, many companies encounter challenges in efficiently executing inventory management, highlighting the need for effective tools. Hence, this research aims to design an inventory management platform that facilitates stable inventory control and develops an optimal fee algorithm for this purpose. The study segregates fee determination methods into Static Pricing and Dynamic Pricing and identifies the most suitable approach for platform operations. Existing research often assumes inventory demand follows specific distributions, potentially yielding inaccurate results when the actual demand deviates from these assumed distributions. Therefore, this study seeks to apply a Distribution-Free model to both Static and Dynamic Pricing, enabling usability even when demand characteristics are unknown, aiming to demonstrate its efficacy through numerical experiments. The algorithm derived from this research is anticipated to enhance the competitiveness of inventory management platforms and contribute to increased operational efficiency.