Technical Note—A Conic Integer Optimization Approach to the Constrained Assortment Problem Under the Mixed Multinomial Logit Model

Alper Şen, Alper Atamtürk, Philip Kaminsky
2018 Operations Research  
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
more » ... the capacity constraints, enables the solution of large instances using commercial optimization software.
doi:10.1287/opre.2017.1703 fatcat:ift2gp63iff2hbp2h2hyv653z4