Jonas Hense | 07.10.2021
Our latest research work on assortment optimization for omni-channel retailers was accepted for publication in the European Journal of Operational Research (VHB-Journal: A). We are happy to announce that the Journal Pre-proof is already available at https://doi.org/10.1016/j.ejor.2021.09.045
Retail customers are increasingly utilizing multiple sales channels. Operations are integrated across channels, information is exchanged and assortments are coordinated such that neither the retailer nor the customer distinguishes between the channels anymore. This requires retailers to decide which product to list in which channel in which quantity. Relevant customer behavior needs to be taken into account for this decision.
We approach the problem by defining assortments, shelf space and inventory across channels. Stochastic, space-elastic and out-of-assortment and out-of-stock demand both for customer substitutions within a channel and substitutions between channels are considered. Our approach shows the profit potential of cross-channel demand through buy online, pick-up in store while still emphasizing the opportunities for in-channel demand substitutions.