This paper presents a mathematical model for jointly optimizing base stock levels for the multiple items subject to service level goals. The proposed model uses the expected demand and substitution probabilities between products as inputs and has been used to analyze the effects of demand...

Accurate estimates of the future demand and the substitution probabilities between products are important inputs for retail assortment optimization. However, these quantities are difficult to estimate as the estimation involves understanding and modeling of consumer’s choice behavior when a...