The Multiple-Choice Nested Knapsack Model

A specially-structured integer programming model, called the multiple-choice nested knapsack model, is developed in this paper. The model is characterized by variables which are partitioned into multiple-choice sets and resource constraints which are nested across the multiple-choice sets. The application of the model in the areas of merchandise catalog planning and sales resource allocation is described. An algorithm for the model is presented and the results of the computational testing of the algorithm are provided.