A combinatorial algorithm for constrained assortment optimization under nested logit model

2016/03/30 by Tian Xie, Xie, Tian
Business, Management and Accounting · Computer Science · Decision Sciences · #Auction Theory and Applications #FOS: Mathematics #Optimization and Control (math.OC) #Optimization and Search Problems #Supply Chain and Inventory Management

paper · pdf · doi:10.48550/arxiv.1603.09014

openalex publication_date 2016/03/30 · openalex created_date 2016/06/24 · openalex updated_date 2026/07/28

Abstract

We consider the assortment optimization problem with disjoint-cardinality constraints under two-level nested logit model. To solve this problem, we first identify a candidate set with O(mn²) assortments and show that at least one optimal assortment is included in this set. Based on this observation, a fast algorithm, which runs in O(m n² log mn) time, is proposed to find an optimal assortment.

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