A Conic Integer Programming Approach to Constrained Assortment Optimization under the Mixed Multinomial Logit Model [article]

Alper Sen, Alper Atamturk, Philip Kaminsky
2017 arXiv   pre-print
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.
arXiv:1705.09040v2 fatcat:hvvnsgzhrnd6bi3pabgiyakmli