A Branch-and-Price Approach to the Share-of-Choice Product Line Design Problem

• 成果类型: Article
• 署名作者: Wang, Xinfang (Jocelyn); Camm, Jeffrey D.; Curry, David J.
• 署名单位: University System of Georgia; Georgia Southern University; University System of Ohio; University of Cincinnati; University System of Ohio; University of Cincinnati
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1090.1058
• 发表日期: 2009
• 页码: 1718-1728
• 关键词: branch and price; Column Generation; Combinatorial Optimization; CONJOINT ANALYSIS; integer programming; Marketing; optimization; product line design; share of choice

摘要

We develop a branch-and-price algorithm for constructing an optimal product line using partworth estimates from choice-based conjoint analysis. The algorithm determines the specific attribute levels for each multiattribute product in a set of products to maximize the resulting product line's share of choice, i.e., the number of respondents for whom at least one new product's utility exceeds the respondent's reservation utility. Computational results using large commercial and simulated data sets demonstrate that the algorithm can identify provably optimal, robust solutions to realistically sized problems.