Market Sharing: Assigning Retailers to Company Divisions

Variables

Table 13.3 shows the variables that are used in this example.

Table 13.3: Variables

Variable Name

Interpretation

Assign[retailer,division]

1 if retailer is assigned to division; 0 otherwise

MarketShare[category,division]

Market share for category and division

Surplus[category,division]

$\max \{ \Variable{MarketShare[category,division]} - \Argument{target[division]}, 0\} $

Slack[category,division]

$\max \{ \Argument{target[division]} - \Variable{MarketShare[category,division]}, 0\} $

MinMax

$\underset {\text {division} \in \text {DIVISIONS}} {\max \limits _{\text {category} \in \text {CATEGORIES},}}\left| \Variable{MarketShare[category,division]}-\Argument{target[division]} \right|$