Estimation of a consider-then-choose customer choice model for tractable assortment optimization


Schwamberger, Jonas ; Fleischmann, Moritz ; Strauss, Arne



Document Type: Conference presentation
Year of publication: 2022
Conference title: Euro 2022
Location of the conference venue: Espoo, Finland
Date of the conference: 03.-06.06.2022
Related URLs:
Publication language: English
Institution: Business School > ABWL u. Logistik (Fleischmann 2009-)
Subject: 330 Economics
Abstract: In attended home delivery services, the time slot offering problem is of high importance, as it significantly impacts the retailer’s efficiency in providing this service. Customer choice behavior is a crucial factor to be considered in this planning problem. To facilitate this task, customer choice models have been developed that reflect the customer decision-making process. A particularly realistic choice model is the consider-then-choose model. This non-parametric customer choice model consists of two steps: in a first step, all eligible time slots are identified and in a second step, the considered time slots are ranked and the highest-ranked time slot is chosen. In this study, we use the consider-then-choose model to solve the time slot assortment problem. We propose an approach to estimate this choice model from historical transaction data and incorporate a structure that can be exploited in the online time slot offering decision. We evaluate our estimation and optimization approach in a realistic numerical study.




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