Data-Driven Research in Retail Operations - A Review

Abstract

We review the operations research/ management science literature on data-driven methods in retail operations. This line of work has grown rapidly in recent years, thanks to availability of high-quality data, improvements in computing hardware, and parallel developments in machine learning methodologies. We survey state-of-the-art studies in three core aspects of retail operations -- assortment optimization, order fulfillment, and inventory management. We then conclude the paper by pointing out some interesting future research possibilities for our community.