| Product assortment problem is an enduring hot spot and difficulty in the traditional retail.In recent years,with the advent of cross-border e-commerce,many small and medium enterprises also face assortment and order decision problems.However,the traditional methods of product assortment decision would undermine the overall profit for consumers’ online shopping decisions are different from shopping in physical stores.Taking company A as an example,there are two limitations of decision in company A.The first one is that the company ignores the purchasing behavior of consumers.Besides,it neglects replaceability among commodities.In order to solve the problem of company A,this article tries to establish a consumer choice model of company A and then predicts the basic demand for all products without taking account of substitution.What’s more,this thesis uses this basic demand to calculate the coefficient and probability of substitution,and then obtains the demand of different assortments under the consideration of product substitution.After getting the expected demand from company and the demand calculating from substitution and non-substitution,this article takes account of budget constraint,and then establishes a mathematical programming model for company A.In addition,it calculates the assortment and order quantity in three different conditions by using the R software and genetic algorithm.Finally,this thesis makes a comparative analysis of company’ profits,product assortment and order quantity in three different conditions.What’s more,the result of research shows if the company takes consumers’ online behavior and product substitution into consideration,it could get more profits in assortment and order decision.The application of this method can provide a guiding role for the positive development of cross-border e-commerce. |
