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Product line optimization with multiples sites

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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Preprints, Working Papers, ...
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Submitted on : Wednesday, November 11, 2020 - 2:42:55 PM
Last modification on : Wednesday, November 3, 2021 - 6:22:42 AM
Long-term archiving on: : Friday, February 12, 2021 - 6:34:41 PM


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  • HAL Id : hal-03000086, version 1


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



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