Publication
INFORMS 2020
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Sustainable assortment planning

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Abstract

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.

Date

07 Sep 2020

Publication

INFORMS 2020

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