Assortment Planning and Inventory Decisions Under a Locational Choice Model
Management Science
Dynamic Assortment with Demand Learning for Seasonal Consumer Goods
Management Science
Retail Assortment Planning in the Presence of Consumer Search
Manufacturing & Service Operations Management
Optimal inventory policies for deteriorating complementary and substitute items
International Journal of Systems Science
Dynamic Pricing and Inventory Control of Substitute Products
Manufacturing & Service Operations Management
OR FORUM--Rocket Science Retailing: The 2006 Philip McCord Morse Lecture
Operations Research
Technical Note---A Multiperiod Model of Inventory Competition
Operations Research
Polyhedral analysis for the two-item uncapacitated lot-sizing problem with one-way substitution
Discrete Applied Mathematics
Optimal ordering policy for perishable high-tech products based on substitutable demand
CCDC'09 Proceedings of the 21st annual international conference on Chinese control and decision conference
Structural Estimation of the Effect of Out-of-Stocks
Management Science
Assortment Planning and Inventory Decisions Under Stockout-Based Substitution
Operations Research
On the Interaction Between Demand Substitution and Production Changeovers
Manufacturing & Service Operations Management
The Role of Component Commonality in Product Assortment Decisions
Manufacturing & Service Operations Management
Optimal Algorithms for Assortment Selection Under Ranking-Based Consumer Choice Models
Manufacturing & Service Operations Management
On the modeling of demand spill for a stochastic demand system under competition
Operations Research Letters
Forecasting prices in dynamic heterogeneous product markets using multivariate prediction methods
Proceedings of the 13th International Conference on Electronic Commerce
Manufacturing & Service Operations Management
Marketing Science
A branch-and-cut algorithm for the latent-class logit assortment problem
Discrete Applied Mathematics
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Customers for retail merchandise can often be satisfied with one of several items. Accounting for demand substitution in defining customer service influences the choice of items to stock and the optimal inventory level for each item stocked. Further, when certain items are not stocked, the resulting substitutions increase the demand for other items, which also affects the optimal stock levels. In this paper, we develop a probabilistic demand model for items in an assortment that captures the effects of substitution and a methodology for selecting item inventory levels so as to maximize total expected profit, subject to given resource constraints. Illustrative examples are solved to provide insights concerning the behavior of the optimal inventory policies, using the negative binomial demand distribution, which has performed well in fitting retail sales data.