Hyper-local sustainable assortment planning

Assortment planning, an important seasonal activity for any retailer, involves choosing the right subset of products to stock in each store.While existing approaches only maximize the expected revenue, we propose including the environmental impact too, through the Higg Material Sustainability Index....

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Bibliographic Details
Published in:arXiv.org 2020-07
Main Authors: Aggarwal, Nupur, Bansal, Abhishek, Manglik, Kushagra, Kulkarni, Kedar, Raykar, Vikas
Format: Article
Language:English
Subjects:
Environmental impact
Multiple objective analysis
Pareto optimization
Revenue
Sustainability
Online Access:Get full text
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Summary:Assortment planning, an important seasonal activity for any retailer, involves choosing the right subset of products to stock in each store.While existing approaches only maximize the expected revenue, we propose including the environmental impact too, through the Higg Material Sustainability Index. The trade-off between revenue and environmental impact is balanced through a multi-objective optimization approach, that yields a Pareto-front of optimal assortments for merchandisers to choose from. Using the proposed approach on a few product categories of a leading fashion retailer shows that choosing assortments with lower environmental impact with a minimal impact on revenue is possible.
ISSN:2331-8422