Adaptive Rank Sampling with Robust Solution for Assortment Planning
Published in Manuscript, under revision, 2019
Research work with Professor Patrick Jaillet (MIT Operations Research Center) and Dr. Mai Anh (Singapore-MIT Alliance). In this paper, we show connections between parametric and rank-based choice models. We propose a new approach to sample ranks and update their distribution from population. We then propose a data-driven robust optimization model, i.e., likelihood robust optimization, for non-parametric assortment planning and we show how to solve the robust model in a tractable way. We provide experimental results using a real-like retail dataset, which shows the efficiency of our rank sampling approach and the tractability of our robust method.
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