In this paper, we investigate the assortment planning decisions of a retailer that operates an online sales channel and a brick-and-mortar store simultaneously. We consider the impact of product returns, which is a norm in retailing but also a factor for lost profit, explicitly. Assortment...

For many retailers, markdown decisions are taken by retail buyers whose compensation is based on sales revenue so their objective is to maximize it through the season. This implies that the buyers' objectives are not perfectly aligned with the overall profitability the firm. Many retailers set...