Optimizing Retail Assortments for Diverse Customer Preferences

Stephen A. Smith ()
Additional contact information
Stephen A. Smith: Santa Clara University

Chapter Chapter 11 in Retail Supply Chain Management, 2015, pp 293-317 from Springer

Abstract: Abstract This chapter develops a modeling structure for optimizing a retailer’s assortment, based on a sequential choice of retailer and product by heterogeneous customers. The resulting optimization problem is reduced to a mixed integer LP through the use of a newsvendor approximation. The sensitivity of the retailer’s optimal assortment to its market share relative to competing retailers is also analyzed. A commercial data base of customer utilities for DVD players obtained through conjoint analysis is used to illustrate the results.

Keywords: Assortment optimization; Heterogeneous preferences; Multinomial logit; Consideration sets (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-1-4899-7562-1_11

Ordering information: This item can be ordered from
http://www.springer.com/9781489975621

DOI: 10.1007/978-1-4899-7562-1_11

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().