Technical Note-A Conic Integer Optimization Approach to the Constrained Assortment Problem Under the Mixed Multinomial Logit Model

• 成果类型: Article
• 署名作者: Sen, Alper; Atamturk, Alper; Kaminsky, Philip
• 署名单位: Ihsan Dogramaci Bilkent University; University of California System; University of California Berkeley
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2017.1703
• 发表日期: 2018
• 页码: 994-1003
• 关键词: Network Revenue Management; retail assortments; choice model; algorithm; substitution; PROGRAMS; cuts

摘要

We consider the constrained assortment optimization problem under the mixed multinomial logit model. Even moderately sized instances of this problem are challenging to solve directly using standard mixed-integer linear optimization formulations. This has motivated recent research exploring customized optimization strategies and approximation techniques. In contrast, we develop a novel conic quadratic mixed-integer formulation. This new formulation, together with McCormick inequalities exploiting the capacity constraints, enables the solution of large instances using commercial optimization software.