Joint product assortment, inventory and price optimization to attract loyal and non-loyal customers

Katsifou, Argyro; Seifert, Ralf W.; Tancrez, Jean‐Sébastien

doi:10.1016/j.omega.2014.02.002

Cited by 32 publications

(15 citation statements)

References 18 publications

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“…The solutions to the problems of price optimization are devoted to [6,9,[11][12][13][14][15]. They present optimization models taking into account the specifics of the object of study.…”

Section: Literature Analysis and Problem Statementmentioning

confidence: 99%

Development of a price optimization algorithm using inverse calculations

Gribanova¹

2019

EEJET

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“…The solutions to the problems of price optimization are devoted to [6,9,[11][12][13][14][15]. They present optimization models taking into account the specifics of the object of study.…”

Section: Literature Analysis and Problem Statementmentioning

confidence: 99%

Development of a price optimization algorithm using inverse calculations

Gribanova¹

2019

EEJET

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“…Yet these decisions have been made somewhat independently due to the complexity resulting from the joint optimization [2]. In this literature study, we review the papers by different themes, i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In each customer choice model, they formulate different assortment optimization models combined with newsvendor and EOQ inventory model. Katsifou, Seifert and Tancrez (2014) classify consumers into loyal consumer and non-loyal consumer; they group products into two types: special products (lower profit margin and a shorter sales period and aim to increase store traffic by attracting non-loyal) and standard product (offered all year around and aim to attract and retain a steady flow of loyal customers) [15]. In such a background, they throw light on an optimization model to trade off assortment, inventory.…”

Section: Inventory and Assortmentmentioning

confidence: 99%

Review on Assortment Problems in Retailing Supply Chain Management

Ji¹,

Liang²

2018

dtssehs

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In this paper, we are aimed at reviewing assortment problems integrating pricing strategies, inventory levels and distribution network planning in retail. Through the literature study, we present a comprehensive and updated review and put forward the future directions for assortment study. The main methodology we used is literature study. We classified related papers and reviewed them by different themes. We find that a great number of existing papers related to assortment problems mostly combine the problem of pricing decision, inventory control and distribution design. However, those papers tend to study two or three points above. In other words, there is no literature studying all points simultaneously. Given our findings, we finally propose that it is innovative and valuable to put efforts to study assortment problems combined with pricing, inventory and distribution decisions.

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“…Ghoniem et al (2013) optimized the assortment and pricing decisions for complementary retail categories assuming customers' choice behavior as maximumsurplus model and exerting cross-selling considerations. Katsifou et al (2014) introduced a combined assortment including standard and special products, to increase store traffic; and analyze inventory level, pricing, and product assortment under cross selling effect. They proposed that with decreasing cross-selling, a retailer should increase the size of standard assortment and decrease the prices.…”

Section: Literature Of Assortment Planningmentioning

confidence: 99%

Integrating assortment selection, pricing and mixed-bundling problems for multiple retail categories under cross-selling

Rabbani¹,

Salehi²,

Farshbaf‐Geranmayeh³

2017

10.5267/j.uscm

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This paper optimizes joint mixed bundling, assortment planning and pricing problems for complementary retail categories that comprise substitutable items. These categories are divided into one primary category and multiple secondary categories and based on cross-selling effect, customers of primary category can opt to buy from other categories. It is assumed that the bundle can comprise one product of each offered complementary categories. A mixed-integer nonlinear programming is proposed that maximizes total profit by optimizing strategy of bundling, assortment selection and prices of single products and the bundle under a maximumsurplus customer choice model. Then because of computational considerations, this model is linearized and converted to a mixed-integer linear programming; whereby exact solution for even large-scale problems can be obtained. The results show that if cross-selling effect between product categories is overlooked or bundling of products is not allowed, then significant profit losses, will be resulted. To the best of our knowledge, this is the first study on bundling strategies in assortment selection decisions.Growing Science Ltd. All rights reserved. 7

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Joint product assortment, inventory and price optimization to attract loyal and non-loyal customers

Cited by 32 publications

References 18 publications

Development of a price optimization algorithm using inverse calculations

Development of a price optimization algorithm using inverse calculations

Review on Assortment Problems in Retailing Supply Chain Management

Integrating assortment selection, pricing and mixed-bundling problems for multiple retail categories under cross-selling

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