Assortment optimization in omni-channel retailing

Nowadays the majority of retail customers use multiple channels. We investigate the assortment, space and inventory problem for an omni-channel retailer operating with interconnected bricks-and-mortar stores and an online shop. For this problem it becomes essential to consider customers’ demand interactions across channels. Current literature mainly focuses on single-channel assortments and ignores cross-channel substitution. We contribute the...