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;