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Optimizing and Evaluating Retail Assortments for Infrequently Purchased Products

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  • Miller, Christopher M.
  • Smith, Stephen A.
  • McIntyre, Shelby H.
  • Achabal, Dale D.

Abstract

This article develops a methodology for choosing optimal retail assortments for infrequently purchased products and assessing the robustness of such assortments with regard to shifts in customer preferences. The approach incorporates heterogeneous consumer preferences and uses integer programming to determine optimal retail assortments. The robustness of the resulting assortments is examined using alternative consumer choice assumptions and ranges of parameter values. The methodology is illustrated using adaptive conjoint data collected via the Internet and is assessed against the sales results from an assortment offered by a national retail chain.

Suggested Citation

  • Miller, Christopher M. & Smith, Stephen A. & McIntyre, Shelby H. & Achabal, Dale D., 2010. "Optimizing and Evaluating Retail Assortments for Infrequently Purchased Products," Journal of Retailing, Elsevier, vol. 86(2), pages 159-171.
    • Handle: RePEc:eee:jouret:v:86:y:2010:i:2:p:159-171
    DOI: 10.1016/j.jretai.2010.02.004
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    3. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
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    6. Robert P. Rooderkerk & Harald J. van Heerde & Tammo H. A. Bijmolt, 2013. "Optimizing Retail Assortments," Marketing Science, INFORMS, vol. 32(5), pages 699-715, September.

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