Recently, Li and Chang proposed an approximate model for assortment problems. Although their model is quite promising to find approximately global solution, too many 0-1 variables are required in their solution process. This paper proposes another way for solving the same problem. The proposed method uses iteratively a technique of piecewise linearization of the quadratic objective function. Numerical examples demonstrate that the proposed method is computationally more efficient than the Li and Chang method.
- Global optimization