Retail store managers may not follow order advices generated by an automated inventory replenishment system if their incentives differ from the cost-minimization objective of the system or if they perceive the system to be suboptimal. We study the ordering behavior of retail store managers in a...

We consider a single-period assortment planning and inventory management problem for a retailer, using a locational choice model to represent consumer demand. We first determine the optimal variety, product location, and inventory decisions under static substitution, and show that the optimal...