The Stability of MNL-Based Demand Under Dynamic Customer Substitution and Its Algorithmic Implications: A Randomized (1 − ε)-Approximation Scheme for Dynamic Assortment PlanningResearch Paper
A retailer chooses which products to carry and how many units of each to stock, under a shelf or warehouse capacity, before a selling season in which inventory is not replenished. Customers who find their favourite product sold out may buy another one instead: this dynamic substitution couples the demand of all products through the stock-out history.…