The Value of Robust Assortment Optimization Under Ranking-based Choice Models

The ranking-based choice model is a popular model in revenue management for predicting demand for a firm’s products based on the assortment of products that the firm offers to their customers. Because this model has a huge number of parameters, many different ranking-based choice models can be consistent with the historical sales data generated by … Read more

Pricing to accelerate demand learning in dynamic assortment planning for perishable products

Retailers, from fashion stores to grocery stores, have to decide what range of products to off er, i.e., their product assortment. New business trends, such as mass customization and shorter product life cycles, make predicting demand more difficult, which in turn complicates assortment planning. We propose and study a stochastic dynamic programming model for simultaneously making … Read more