Retailers can exploit the consumer willingness to substitute to improve their profit, service level and waste. This paper investigates to what extent such improvement can be realised by the replenishment decisions. Two order policies are compared: one policy neglecting product substitution, and...

This paper presents a new two-phase method for solving convex mixed-integer nonlinear programming (MINLP) problems, called Decomposition-based Outer Approximation Algorithm (DECOA). In the first phase, a sequence of linear integer relaxed sub-problems (LP phase) is solved in order to rapidly...