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摘要
En 中文
Which products should a firm offer based on its customers’ preferences? This is the question posed in the problem of product line design, a well-studied and notoriously difficult problem that is central in marketing science. In “Exact First-Choice Product Line Optimization” by Dimitris Bertsimas and Velibor V. Mišić, the authors propose a new approach for solving this problem when segments of customers choose products according to a ranking. They propose a new mixed-integer optimization model of the problem, which they show to be tighter than prior formulations, and a solution approach based on Benders decomposition, which exploits the surprising fact that the subproblem can be solved efficiently for both integer and fractional master solutions. A well-known product line instance based on a conjoint data set of over 3,000 products and 300 respondents, which required a week of computation time to solve in prior work, is solved by the authors’ approach in just over 10 minutes.
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