Product Assortment Decisions for a Network of Retail Stores using Data Mining with Optimization

Sudip Bhattacharjee, Fidan Boylu, Ram Gopal

2012

Abstract

This paper presents a model for product assortment optimization for a network of retail stores operating in various locations of a company. Driven by the local market information of each retail store, the model determines the right products to include in a store’s assortment and which stores to ship from in the store network. The model first learns the global patterns of the frequent itemsets based on association rule mining to extract patterns of products with corresponding sales benefits. It then encodes the pattern information into the development of a global optimization formulation, which maximizes the revenue of the company in aggregate and identifies the optimal solution for each local store by taking into account the possibility of shipments in the network. We use the transactional level data from an industry leading plastics manufacturer and retailer in the United States to demonstrate the utility of the model.

Paper Citation

in Harvard Style

Bhattacharjee S., Boylu F. and Gopal R. (2012). Product Assortment Decisions for a Network of Retail Stores using Data Mining with Optimization . In Proceedings of the International Conference on Knowledge Discovery and Information Retrieval - Volume 1: KDIR, (IC3K 2012) ISBN 978-989-8565-29-7, pages 319-323. DOI: 10.5220/0004106703190323

in Bibtex Style

@conference{kdir12,
author={Sudip Bhattacharjee and Fidan Boylu and Ram Gopal},
title={Product Assortment Decisions for a Network of Retail Stores using Data Mining with Optimization},
booktitle={Proceedings of the International Conference on Knowledge Discovery and Information Retrieval - Volume 1: KDIR, (IC3K 2012)},
year={2012},
pages={319-323},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004106703190323},
isbn={978-989-8565-29-7},
}

in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on Knowledge Discovery and Information Retrieval - Volume 1: KDIR, (IC3K 2012)
TI - Product Assortment Decisions for a Network of Retail Stores using Data Mining with Optimization
SN - 978-989-8565-29-7
AU - Bhattacharjee S.
AU - Boylu F.
AU - Gopal R.
PY - 2012
SP - 319
EP - 323
DO - 10.5220/0004106703190323