The AssortPlan.lng Model

Assortment Planning

View the model
Download the model

Assortment planning with customers (AssortPlan.lng) who have a strict preference ordering.
Each market segment s has a preference ordering RP(s,p), for buying product type p. The base "product" of buying nothing has a preference 0.
A market segment will buy that product, of those offered, that has the highest preference. It costs money to introduce lots of products, so given consumer preferences, product profitability, and cost of carrying each product, which set of products should the vendor offer? Each segment s has a size, NUM(s), which is the total unit sales to that segment. Specifically, if the vendor carries only product p, then the unit sales to segment s will be NUM(s), assuming RP(s,p) > 0;


Marketing | Assortment Planning | Consumer Choice | Demand Substitution | Preference Ordering |