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Quote Pricing Optimization

Manufacturing – Pricing Optimization

Quote acceptance scoring and price simulations to support margin and conversion optimization.

-99% → +100%
Price range simulated (what-if)

A pricing simulator

A calibrated acceptance score and price corridors per segment, for margin without hurting conversion

Project Details

Client

Packitoo

Sector

Manufacturing – Pricing Optimization

Year

2024

Key Technologies
PythonXGBoostOptunaSHAPLIMEscikit-learn

Mission

Lead Senior Data Scientist - Pricing & Revenue Optimization

Pricing Optimization & Propensity Scoring

Data Science assignment - pricing optimization.

Price optimization: model the acceptance probability of a quote (accepted/not accepted) and recommend the optimal margin-maximizing price. Classification & scoring: XGBoost (logistic) to estimate acceptance propensity per quote. What-if simulations: scenario engine varying price from –99% to +100% to explore the acceptance rate ↔ margin trade-off and plot optimum points by segment. Data pipelines & quality: cleaning, transformations, normalization/standardization, leakage detection and removal, strict temporal split. Robust validation: temporal cross-validation (Time Series CV), train/test monitoring and generalization safeguards. Reasoned Auto-ML: Optuna / Hyperopt for hyperparameter tuning (Bayesian/Tree-Parzen search). Interpretability & trust: SHAP, LIME, local & global importances, explanation reports for business teams. Performance monitoring: metrics dashboards (LogLoss, ROC-AUC, PR-AUC and calibration), data/model drift monitoring. Productionization: model packaging, deployment (batch/API), documentation and usage playbooks.

Contexte & Environnement

Business scope: analysis of quotes with multiple explanatory criteria (product, customer, sales context, etc.) to balance price vs. acceptance probability. Stakes: provide sales/finance teams with a price simulator and actionable recommendations (price corridors, inflection points) to increase margin without hurting conversion. Constraints: methodological rigor (no information leakage), time as a structuring variable (TS-CV), strong explainability for business adoption. Stakeholders: Sales / Revenue / Finance, Data, IT; cross-functional Data Scientist role with decision-makers.

Team

Lead Senior Data Scientist, cross-functional with Sales, Revenue, Finance, Data and IT

Environment

Python ML pipeline, batch and/or API scoring, performance and drift dashboards

Objectifs Cles

1Propensity model: reliable, calibrated acceptance score for each quote.
2Pricing simulator: what-if from –99% to +100% with projected margins and price corridors by segment.
3Operational gains: ready-to-use recommendations (target price, sensitivity analysis, trade-offs).
4Robustness & governance: TS-CV, generalization metrics, standardized and explainable reporting (SHAP/LIME).
5Production & adoption: end-to-end pipeline (data→model→API/batch→dashboard), documentation and user training.

Technologies & Infrastructure

PythonPandasNumPyscikit-learnXGBoostOptunaHyperoptSHAPLIME

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