Capacitated assortment planning of a multi-location system under transshipments

Name: Capacitated assortment planning of a multi-location system under transshipments
Author: Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y., Cephe, E.

İsim	Capacitated assortment planning of a multi-location system under transshipments
Yazar	Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y., Cephe, E.
Basım Tarihi:	2022-09
Basım Yeri	- Elsevier
Konu	Assortment capacity, Demand substitution, Exogenous demand, Inventory sharing, Supply chain management
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0925-5273
Kayıt Numarası	9d95b2e3-d6cc-46e2-aa54-5f6362318334
Lokasyon	Management Information Systems
Tarih	2022-09
Örnek Metin	We analyze a joint assortment optimization problem for multiple locations of a firm, where each of those locations has an assortment capacity. When one location does not keep a product in its assortment, it transships the requested product from another location when needed. If this is not possible, then demand may be fulfilled by a substitutable (second choice) product from the current location or another demand location through transshipment. We show that the resulting assortment planning problem is NP-complete. We provide structural properties of the optimal assortments that would simplify and speed up the search for the optimal solution. We specifically obtain the optimal product assortment in polynomial time when no substitutions are present. When both transshipments and substitutions are considered, the products adopted by all locations form a common assortment that includes the most popular products among customers, i.e., a popular set, which may not be valid for the individual assortment of each location. We derive an upper limit on customers' substitution probability for each location, such that at optimality, the location's capacity is utilized in full when the substitution probability is below this threshold value. Moreover, we show that when all locations have the same assortment capacity, utilizing theirs to the maximum reduces costly transshipment opportunities. Extensive numerical analyses are also conducted that illustrate the sensitivity of the optimal assortments to system characteristics and the benefits of allowing transshipment and demand substitution in multi-location assortment planning.
DOI	10.1016/j.ijpe.2022.108550
Cilt	251

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Capacitated assortment planning of a multi-location system under transshipments

Yazar Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y., Cephe, E.

Basım Tarihi 2022-09

Basım Yeri - Elsevier

Konu Assortment capacity, Demand substitution, Exogenous demand, Inventory sharing, Supply chain management

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0925-5273

Kayıt Numarası 9d95b2e3-d6cc-46e2-aa54-5f6362318334

Lokasyon Management Information Systems

Tarih 2022-09

Örnek Metin We analyze a joint assortment optimization problem for multiple locations of a firm, where each of those locations has an assortment capacity. When one location does not keep a product in its assortment, it transships the requested product from another location when needed. If this is not possible, then demand may be fulfilled by a substitutable (second choice) product from the current location or another demand location through transshipment. We show that the resulting assortment planning problem is NP-complete. We provide structural properties of the optimal assortments that would simplify and speed up the search for the optimal solution. We specifically obtain the optimal product assortment in polynomial time when no substitutions are present. When both transshipments and substitutions are considered, the products adopted by all locations form a common assortment that includes the most popular products among customers, i.e., a popular set, which may not be valid for the individual assortment of each location. We derive an upper limit on customers' substitution probability for each location, such that at optimality, the location's capacity is utilized in full when the substitution probability is below this threshold value. Moreover, we show that when all locations have the same assortment capacity, utilizing theirs to the maximum reduces costly transshipment opportunities. Extensive numerical analyses are also conducted that illustrate the sensitivity of the optimal assortments to system characteristics and the benefits of allowing transshipment and demand substitution in multi-location assortment planning.

DOI 10.1016/j.ijpe.2022.108550

Cilt 251