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http://www.ssrn.com/author=2759554
http://www.ssrn.com/rss/en-usSun, 06 Aug 2017 03:13:07 GMTeditor@ssrn.com (Editor)Sun, 06 Aug 2017 03:13:07 GMTwebmaster@ssrn.com (WebMaster)SSRN RSS Generator 1.0New: Relating the Approximability of the Fixed Cost and Space Constrained Assortment ProblemsCustomer choice models are a fundamental tool used by retailers to optimize inventory, pricing, and stocking decisions. One important optimization problem is the assortment problem in which the retailer wants to determine which products to offer to customers to maximize expected revenue. This paper relates two variants of this assortment problem: the space constrained assortment problem, in which the retailer has a limit on the total space of the offered assortment, and the fixed cost assortment problem, in which the retailer incurs a fixed cost for each offered product. In particular, we develop an approximation scheme for the space constrained problem for any random utility choice model that only relies on the ability to solve the corresponding fixed cost assortment problem. We then apply this technique to give the first constant factor approximation scheme for the space constrained assortment problem under a general choice model for vertically differentiated products. Last, we ...
http://www.ssrn.com/abstract=3013319
http://www.ssrn.com/1614870.htmlSat, 05 Aug 2017 22:10:55 GMTNew: Technical Note: Assortment Optimization with Small Consideration SetsWe study a customer choice model that captures purchasing behavior when there is a limit on the number of times that a customer will substitute among the offered products. Under this model, we assume each customer is characterized by a ranked preference list of products and, upon arrival, will purchase the highest ranking offered product. Since we restrict ourselves to settings in which customers consider a limited number of products, we assume that these rankings contain at most k products. We call this model the k-product nonparametric choice model. We focus on the assortment optimization problem under this choice model. In this problem, the retailer wants to find the revenue maximizing set of products to offer when the buying process of each customer is governed by the k-product nonparametric choice model. First, we show that the assortment problem is strongly NP-hard even for k = 2. Motivated by this result, we develop a linear programming-based randomized rounding algorithm that ...
http://www.ssrn.com/abstract=3013357
http://www.ssrn.com/1614688.htmlFri, 04 Aug 2017 12:39:45 GMT