Assortment Optimization Under Variants of the Nested Logit Model

Assortment Optimization Under Variants of the Nested Logit Model

We study a class of assortment optimization problems where customers choose among the offered products according to the nested logit model. There is a fixed revenue associated with each product. The objective is to find an assortment of products to offer so as to maximize the expected revenue per customer. We show that the problem is polynomially solvable when the nest dissimilarity parameters ...

Constrained Assortment Optimization for the Nested Logit Model

We study assortment optimization problems where customer choices are governed by the nested logit model and there are constraints on the set of products offered in each nest. Under the nested logit model, the products are organized in nests. Each product in each nest has a fixed revenue associated with it. The goal is to find a feasible set of products, i.e. a feasible assortment, to maximize t...

Online Supplement Constrained Assortment Optimization for the Nested Logit Model

Capacity Constraints Across Nests in Assortment Optimization Under the Nested Logit Model

We consider assortment optimization problems when customers choose according to the nested logit model and there is a capacity constraint limiting the total capacity consumption of all products offered in all nests. When each product consumes one unit of capacity, our capacity constraint limits the cardinality of the offered assortment. For the cardinality constrained case, we develop an effici...

Assortment Optimization under the Multinomial Logit Model with Nested Consideration Sets

We study assortment optimization problems when customers choose under the multinomial logit model with nested considerations sets. In this choice model, there are multiple customer types and a customer of a particular type is interested in purchasing only a particular subset of products. We use the term consideration set to refer to the subset of products that a customer of a particular type is...