Question
A company is considering an assortment problem of the following 10 products with zero marginal cost. The price is given in the second row. According
A company is considering an assortment problem of the following 10 products with zero marginal cost. The price is given in the second row. According to the MNL model, the company has estimated the parameters ???? in the third row. Use the MNL model to find the optimal set of products to offer to customers.
Product i | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Price ????i | 600 | 550 | 475 | 400 | 300 | 280 | 240 | 200 | 185 | 175 |
????i | 0.407 | 0.438 | 0.490 | 0.549 | 0.638 | 0.657 | 0.698 | 0.741 | 0.758 | 0.769 |
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Managing Supply Chain and Operations An Integrative Approach
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
1st edition
132832402, 978-0132832403
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