Constrained Assortment Optimization Problem under the Multilevel Nested Logit Model

• 成果类型: Article
• 署名作者: Wang, Yanqiao; Shen, Zuo-Jun Max
• 署名单位: University of California System; University of California Berkeley; University of California System; University of California Berkeley; University of Hong Kong; University of Hong Kong
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13443
• 发表日期: 2021
• 页码: 3467-3480
• 关键词: multilevel nested logit model; no-purchase options; cardinality constraints

摘要

We study the choice-based constrained assortment optimization problem under the multilevel nested logit model with a no-purchase option in every choice stage. For this problem, each candidate product is associated with a fixed profit. The goal is to identify the optimal assortment satisfying a cardinality constraint to maximize the expected profit per customer. There is a cardinality limitation imposed on nodes in the second lowest level. A polynomial-time algorithm with computational complexity O(nmax{m, k}) is provided to locate the optimal assortment for the m-level nested logit model with n products, where k is the maximum number of products within any node in level m-1.