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      Technical note-a conic integer optimization approach to the constrained assortment problem under the mixed multinomial logit model

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      Author(s)
      Şen, A.
      Atamtürk, A.
      Kaminsky, P.
      Date
      2018
      Source Title
      Operations Research
      Print ISSN
      0030-364X
      Publisher
      INFORMS The Institute for Operations Research and the Management Sciences
      Volume
      66
      Issue
      4
      Pages
      994 - 1003
      Language
      English
      Type
      Article
      Item Usage Stats
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      Abstract
      We consider the constrained assortment optimization problem under the mixed multinomial logit model. Even moderately sized instances of this problem are challenging to solve directly using standard mixed-integer linear optimization formulations. This has motivated recent research exploring customized optimization strategies and approximation techniques. In contrast, we develop a novel conic quadratic mixed-integer formulation. This new formulation, together with McCormick inequalities exploiting the capacity constraints, enables the solution of large instances using commercial optimization software.
      Keywords
      Assortment optimization
      Conic integer optimization
      Mixed multinomial logit
      Permalink
      http://hdl.handle.net/11693/50368
      Published Version (Please cite this version)
      https://doi.org/10.1287/opre.2017.1703
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      • Department of Industrial Engineering 733
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