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• W2019956733 abstract "Integrating retail decisions on such aspects as assortment, pricing, and inventory greatly improves profitability. We examine a multi-period selling horizon where a retailer jointly optimizes assortment planning, pricing, and inventory decisions for a product line of substitutable products, in a market with multiple customer segments. Focusing on fast-moving retail products, the problem is modeled as a mixed-integer nonlinear program where demand is driven by exogenous consumer reservation prices and endogenous assortment and pricing decisions. A mixed-integer linear reformulation is developed, which enables an exact solution to large problem instances (with up to a hundred products) in manageable times. Empirical evidence is provided in support of a classical deterministic maximum-surplus consumer choice model. Computational results and managerial insights are discussed. We find that the optimal assortment and pricing decisions do not exhibit a simple, intuitive structure that could be analytically characterized, which reflects the usefulness of optimization approaches to numerically identify attractive trade-offs for the decision-maker. We also observe that suboptimal inventory policies significantly decrease profitability, which highlights the importance of integrated decision-making. Finally, we find that the seasonality of consumer preferences and supply costs present an opportunity for boosting the profit via higher inventory levels and wider assortments." @default.
• W2019956733 created "2016-06-24" @default.
• W2019956733 creator A5005085573 @default.
• W2019956733 creator A5090807287 @default.
• W2019956733 date "2015-09-01" @default.
• W2019956733 modified "2023-10-15" @default.
• W2019956733 title "Integrated retail decisions with multiple selling periods and customer segments: Optimization and insights" @default.
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• W2019956733 doi "https://doi.org/10.1016/j.omega.2015.02.002" @default.
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