Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: The Value of Robust Assortment Optimization Under Ranking-based Choice
  Models   The ranking-based choice model is a popular model in revenue management for
predicting demand for a firm's products based on the assortment of products
that the firm offers to their customers. Because this model has a huge number
of parameters, many different ranking-based choice models can be consistent
with the historical sales data generated by a firm's past assortments.
Motivated by the use of ranking-based choice models in assortment planning, we
consider the following identification question: Is it possible to identify an
assortment with an expected revenue that is strictly greater than the expected
revenues of the firm's past assortments under all ranking-based choice models
that are consistent with the firm's historical sales data?
  In this work, we provide the first answers to the identification question by
using robust optimization. We begin by characterizing the structure of optimal
assortments for a class of robust assortment optimization problems proposed by
Farias, Jagabathula, and Shah (2013). We then leverage this structure to
develop the first algorithms for answering the identification question that run
in polynomial time for any fixed number of past assortments. We use our
algorithms to prove that it is possible to have affirmative answers to the
identification question with as few as two past assortments, and that it is
impossible to obtain affirmative answers when the past assortments are
revenue-ordered. These findings, coupled with concise numerical experiments,
reveal that considering the identification question can be essential for
finding high-quality assortments from ranking-based choice models in
high-stakes assortment planning problems.

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The categories of this paper are: atom-ph
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The categories of this paper are: cond-mat
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The categories of this paper are: math-ph
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The categories of this paper are: cmp-lg
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The categories of this paper are: cs
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The categories of this paper are: plasm-ph
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The categories of this paper are: bayes-an
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The categories of this paper are: q-bio
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The categories of this paper are: chem-ph
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The categories of this paper are: eess
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The categories of this paper are: dg-ga
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The categories of this paper are: astro-ph
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The categories of this paper are: hep-ph
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The categories of this paper are: econ
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The categories of this paper are: stat
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The categories of this paper are: physics