The AssortPlanX.lng Model

Assortment planning

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Assortment planning with customers ( AssortPlan.lng)
who have a strict preference ordering.
A vendor must decide which products to carry, taking into account
how customers will choose among the available products.
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 consumer market segment, s, has a size, NUM( s), which is an upper
limit on the total unit sales to that segment.
Each consumer market segment, s, has a relative preference ordering
RP( s, p) for buying product type p.
The base choice of buying nothing has a preference 0
A consumer will buy that single product of those
offered for which the segment has the highest preference.
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 | Demand Substitution | Preference Ordering | Customer choice |