A Comprehensive Study of Assortment Optimization with Substitution and Uncertainty: Introducing a Machine Learning Heuristic - Archive ouverte HAL
Rapport (Rapport De Recherche) Année : 2023

A Comprehensive Study of Assortment Optimization with Substitution and Uncertainty: Introducing a Machine Learning Heuristic

Résumé

The paper titled "A Comprehensive Study of Assortment Optimization with Substitution and Uncertainty: Introducing a Machine Learning Heuristic" conducts an extensive investigation into assortment optimization, specifically addressing challenges related to both assortment-based and stock-out-based substitutions. We propose a novel machine learning heuristic to efficiently tackle this complex problem, and we further delve into the issue of uncertainty arising from demand variability, aiming to enhance the robustness of our solution approach. The study begins by highlighting the significance of assortment optimization within diverse industries and contexts, emphasizing the need for strategies that can effectively determine the optimal assortment of products to offer. The paper identifies two key challenges: (1) assortment-based substitutions, where products are considered as substitutes by customers, and (2) stock-out-based substitutions, where unavailable products lead to substitutions. In response to these challenges, we introduce a machine learning heuristic as a solution approach. Furthermore, the paper acknowledges the impact of uncertainty in demand forecasting on assortment optimization. Recognizing that demand uncertainty can lead to suboptimal decisions, we extend their investigation to include the integration of robustness into our solution framework. By accounting for demand variability, the proposed approach aims to generate more resilient assortment decisions that can withstand uncertain market conditions.
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Dates et versions

hal-04182275 , version 1 (17-08-2023)

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Identifiants

  • HAL Id : hal-04182275 , version 1

Citer

Harrasse Abir. A Comprehensive Study of Assortment Optimization with Substitution and Uncertainty: Introducing a Machine Learning Heuristic. Mohammed VI polytechnic university. 2023. ⟨hal-04182275⟩

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