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Product line optimization with multiples sites

Sebastián Dávila Martine Labbé 1 Vladimir Marianov Fernando Ordónẽz Frédéric Semet
1 INOCS - Integrated Optimization with Complex Structure
Inria Lille - Nord Europe, ULB - Université libre de Bruxelles, CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille (CRIStAL) - UMR 9189
Abstract : We consider the problem faced by a retailer that selects the set of products to allocate in finite capacity stores to maximize patronage. The purchase decision is made by customers that purchase exactly one product that maximizes her utility that depends on the product price, distance traveled to the store and reservation price, known to the retailer. The retailer's bilevel optimization problem is transformed into an integer optimization formulation. Small size instances are solved optimally, while for large instances, we explore Benders Decomposition, Branch and Cut and Cut and Branch to solve the problem. Our computational results show that the proposed Cut and Branch method obtains the best results, and improves on the current state of the art.
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https://hal.inria.fr/hal-03000086
Contributor : Martine Labbé <>
Submitted on : Wednesday, November 11, 2020 - 2:42:55 PM
Last modification on : Friday, November 27, 2020 - 2:20:11 PM

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Sebastián Dávila, Martine Labbé, Vladimir Marianov, Fernando Ordónẽz, Frédéric Semet. Product line optimization with multiples sites. 2020. ⟨hal-03000086⟩

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