Group-constrained assortment optimization under the multinomial logit model

IF 1.1 Q3 BUSINESS, FINANCE
Julia Heger, Robert Klein
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Abstract

We study an assortment problem under the multinomial logit model with two new types of group constraints that are motivated by a joint project with the German car manufacturer BMW. Under group constraints, products are either attributed to exactly one group or to several groups at once and there is either a bound on the number of products offered per group or on the number of groups from which products are offered. We formulate both optimization problems as binary fractional linear program and provide reformulations that can be solved using state-of-the-art solvers. Finally, we conduct a numerical study and find that all instances of the products-per-group constrained problem as well as small to medium size instances of the number-of-offered-groups constrained problem can be solved within fractions of a second, whereas large instances of the latter problem might take some seconds to be solved.

Abstract Image

多二项Logit模型下的集团约束分类优化
我们通过与德国汽车制造商宝马公司的合作项目,研究了多项式 Logit 模型下的分类问题,该模型具有两种新型的组约束条件。在群体约束条件下,产品要么正好归属于一个群体,要么同时归属于多个群体;要么对每个群体提供的产品数量有限制,要么对提供产品的群体数量有限制。我们将这两个优化问题都表述为二元分数线性方程组,并提供了可使用最先进求解器求解的重述。最后,我们进行了数值研究,发现每组产品数量受限问题的所有实例以及提供产品组数受限问题的中小型实例都能在几分之一秒内求解,而后者的大型实例可能需要几秒钟才能求解。
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来源期刊
CiteScore
3.30
自引率
18.80%
发文量
26
期刊介绍: The?Journal of Revenue and Pricing Management?serves the community of researchers and practitioners dedicated to improving understanding through insight and real life situations. Each article emphasizes meaningful answers to problems whether cutting edge science or real solutions. The journal places an emphasis disseminating the best articles from the best minds and benchmarked businesses within the field of Revenue Management and Pricing.Revenue management (RM) also known as Yield Management (YM) is a management activity that marries the diverse disciplines of operations research/management science analytics economics human resource management software development marketing economics e-commerce consumer behaviour and consulting to manage demand for a firm's products or services with the goal of profit maximisation. From a practitioner standpoint RM encompasses a range of activities related to demand management including pricing segmentation capacity and inventory allocation demand modelling and business process management.Journal of Revenue and Pricing Management?aims to:formulate and disseminate a body of knowledge called 'RM and pricing' to practitioners educators researchers and students;provide an international forum for a wide range of practical theoretical and applied research in the fields of RM and pricing;represent a multi-disciplinary set of views on key and emerging issues in RM and pricing;include a cross-section of methodologies and viewpoints on research including quantitative and qualitative approaches case studies and empirical and theoretical studies;encourage greater understanding and linkage between the fields of study related to revenue management and pricing;to publish new and original ideas on research policy and managementencourage and engage with professional communities to adopt the Journal as the place of knowledge excellence i.e. INFORMS Revenue Management & Pricing section AGIFORS and Revenue Management Society and Revenue Management and Pricing International Ltd.Published six times a year?Journal of Revenue and Pricing Management?publishes a wide range of peer-reviewed practice papers research articles and professional briefings written by industry experts - including:Practice papers - addressing the issues facing practitioners in industry and consultancyApplied research papers - from leading institutions on all areas of research of interest to practitioners and the implications for practiceCase studies - focusing on the real-life challenges and problems faced by major corporations how they were approached and what was learnedModels and theories - practical models and theories which are being used in revenue managementThoughts - assessment of the key issues new trends and future ideas by leading experts and practitionersApprentice - the publication of tomorrows ideas by students of todayBook/conference reviews - reviewing leading conferences and major new books on RM and pricingThe Journal is essential reading for senior professionals in private and public sector organisations and academic observers in universities and business schools - including:Pricing AnalystsRevenue ManagersHeads of Revenue ManagementHeads of Yield ManagementDirectors of PricingHeads of MarketingChief Operating OfficersCommercial DirectorsDirectors of SalesDirectors of OperationsHeads of ResearchPricing ConsultantsProfessorsLecturers
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