Should Only Popular Products Be Stocked? Warehouse Assortment Selection for E-Commerce Companies

Published Online:https://doi.org/10.1287/msom.2022.0428

References

  • Alfaro JA, Corbett CJ (2003) The value of SKU rationalization in practice (the pooling effect under suboptimal inventory policies and nonnormal demand). Production Oper. Management 12(1):12–29.CrossrefGoogle Scholar
  • Aryapadi M, Ecker T, Spielvogel J (2020) Future of retail operations: Winning in a digital era. McKinsey & Company (January), https://www.mckinsey.com/∼/media/McKinsey/Industries/Retail/Our%20Insights/Future%20of%20retail%20operations%20Winning%20in%20a%20digital%20era/McK_Retail-Ops-2020_FullIssue-RGB-hyperlinks-011620.pdf.Google Scholar
  • Bai Y, Feldman J, Segev D, Topaloglu H, Wagner L (2023) Assortment optimization under the multi-purchase multinomial logit choice model. Oper. Res., ePub ahead of print June 7, https://doi.org/10.1287/opre.2023.2463.Google Scholar
  • Bhat CR (2005) A multiple discrete–continuous extreme value model: Formulation and application to discretionary time-use decisions. Transportation Res. Part B Methodological 39(8):679–707.CrossrefGoogle Scholar
  • Catalán A, Fisher M (2012) Assortment allocation to distribution centers to minimize split customer orders. Preprint, submitted October 25, http://dx.doi.org/10.2139/ssrn.2166687.Google Scholar
  • Cox DR (1972) The analysis of multivariate binary data. J. R. Statist. Soc. Ser. C Appl. Statist. 21(2):113–120.Google Scholar
  • Feige U (1998) A threshold of ln n for approximating set cover. J. ACM 45(4):634–652.CrossrefGoogle Scholar
  • Feige U, Mirrokni VS, Vondrák J (2011) Maximizing non-monotone submodular functions. SIAM J. Comput. 40(4):1133–1153.CrossrefGoogle Scholar
  • Feng G, Li X, Wang Z (2018) On substitutability and complementarity in discrete choice models. Oper. Res. Lett. 46(1):141–146.CrossrefGoogle Scholar
  • Gallego G, Topaloglu H (2019) Revenue Management and Pricing Analytics, vol. 209 (Springer, Cham, Switzerland).CrossrefGoogle Scholar
  • Gallego G, Wang R (2019) Threshold utility model with applications to retailing and discrete choice models. Preprint, submitted July 6, http://dx.doi.org/10.2139/ssrn.3420155.Google Scholar
  • Goemans MX, Harvey NJ, Iwata S, Mirrokni V (2009) Approximating submodular functions everywhere. Rabani Y, ed. Proc. 2009 Annual ACM-SIAM Sympos. Discrete Algorithms (SIAM, Philadelphia), 535–544.Google Scholar
  • Guo X, Yu Y, Allon G, Wang M, Zhang Z (2021) RiRiShun logistics: Home appliance delivery data for the 2021 Manufacturing & Service Operations Management data-driven research challenge. Manufacturing Service Oper. Management, ePub ahead of print July 20, https://doi.org/10.1287/msom.2021.0994.LinkGoogle Scholar
  • Huh WT, Li H (2022) Optimal pricing under multiple-discrete customer choices and diminishing return of consumption. Oper. Res. 70(2):905–917.LinkGoogle Scholar
  • Iyer RK, Bilmes JA (2013) Submodular optimization with submodular cover and submodular knapsack constraints. Burges CJ, Bottou L, Welling M, Ghahramani Z, Weinberger KQ, eds. Advances in Neural Information Processing Systems, vol. 26 (Curran Associates, Inc., Red Hook, NY), 2436–2444.Google Scholar
  • Krause A, Guestrin CE (2012) Near-optimal nonmyopic value of information in graphical models. Preprint, submitted July 4, http://arxiv.org/abs/1207.1394.Google Scholar
  • Lee J, Mirrokni VS, Nagarajan V, Sviridenko M (2009) Non-monotone submodular maximization under matroid and knapsack constraints. Mitzenmacher M, ed. Proc. Forty First Annual ACM Sympos. Theory Comput. (Association for Computing Machinery, New York), 323–332.Google Scholar
  • Lin H, Li X, Wu L (2022) Multi-choice preferences learning and assortment recommendation in e-commerce. Preprint, submitted February 16, http://dx.doi.org/10.2139/ssrn.4035033.Google Scholar
  • Lopienski K (2021) How can SKU rationalization help you improve business performance. Accessed August 16, 2023, https://www.shipbob.com/blog/sku-rationalization/.Google Scholar
  • Lovász L (1983) Submodular functions and convexity. Bachem A, Korte B, Grötschel M, eds. Mathematical Programming the State of the Art (Springer, Berlin, Heidelberg), 235–257.CrossrefGoogle Scholar
  • Lu Y, Song JS (2005) Order-based cost optimization in assemble-to-order systems. Oper. Res. 53(1):151–169.LinkGoogle Scholar
  • Lu Y, Song JS, Yao DD (2003) Order fill rate, leadtime variability, and advance demand information in an assemble-to-order system. Oper. Res. 51(2):292–308.LinkGoogle Scholar
  • Nagano K, Kawahara Y, Aihara K (2011) Size-constrained submodular minimization through minimum norm base. Proc. 28th Internat. Conf. Machine Learn. (ICML-11) (Omnipress, Madison, WI), 977–984.Google Scholar
  • Nemhauser GL, Wolsey LA (1978) Best algorithms for approximating the maximum of a submodular set function. Math. Oper. Res. 3(3):177–188.LinkGoogle Scholar
  • Nemhauser GL, Wolsey LA, Fisher ML (1978) An analysis of approximations for maximizing submodular set functions I. Math. Programming 14(1):265–294.CrossrefGoogle Scholar
  • Russell GJ, Petersen A (2000) Analysis of cross category dependence in market basket selection. J. Retailing 76(3):367–392.CrossrefGoogle Scholar
  • Ryzin Gv, Mahajan S (1999) On the relationship between inventory costs and variety benefits in retail assortments. Management Sci. 45(11):1496–1509.LinkGoogle Scholar
  • Schrijver A (2003) Combinatorial Optimization: Polyhedra and Efficiency, vol. B (Springer, Cham, Switzerland).Google Scholar
  • Shaked M, Shanthikumar JG (2007) Stochastic Orders (Springer, Cham, Switzerland).CrossrefGoogle Scholar
  • Song JS (1998) On the order fill rate in a multi-item, base-stock inventory system. Oper. Res. 46(6):831–845.LinkGoogle Scholar
  • Song JS, Yao DD (2002) Performance analysis and optimization of assemble-to-order systems with random lead times. Oper. Res. 50(5):889–903.LinkGoogle Scholar
  • Söylemez D (2021) Assortment planning considering split orders. PhD thesis, Bilkent Universitesi, Ankara, Turkey.Google Scholar
  • Svitkina Z, Fleischer L (2011) Submodular approximation: Sampling-based algorithms and lower bounds. SIAM J. Comput. 40(6):1715–1737.CrossrefGoogle Scholar
  • Tulabandhula T, Sinha D, Karra SR, Patidar P (2023) Multi-purchase behavior: Modeling, estimation, and optimization. Manufacturing Service Oper. Management 25(6):2298–2313.AbstractGoogle Scholar
  • Wan X, Dresner ME (2015) Closing the loop: An empirical analysis of the dynamic decisions affecting product variety. Decision Sci. 46(6):1141–1164.CrossrefGoogle Scholar
  • Williamson DP, Shmoys DB (2011) The Design of Approximation Algorithms (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Wu T, Mao H, Li Y, Chen D (2019) Assortment selection for a frontend warehouse: A robust data-driven approach. Proc. 49th Internat. Conf. Comput. Indust. Engrg. (CIE 49) (Beihang University, Beijing), 56–64.Google Scholar
  • Zhu S, Hu X, Huang K, Yuan Y (2021) Optimization of product category allocation in multiple warehouses to minimize splitting of online supermarket customer orders. Eur. J. Oper. Res. 290(2):556–571.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.