Assortment optimization refers to the problem of selecting a set of products to offer to a group of customers to maximize the revenue that is realized when customers make purchases according to their preferences. Assortment affects costs because it drives inventory decisions.

What is assortment and space optimization?

Assortment and Space Optimization (ASO) is used to determine the optimal selection and arrangement of products within stores by optimizing the product assortment and product placement on a planogram. ... (A VPOG is ASO's assortment recommendations in product facings, depth, stacking, and SKU order in form of a planogram.)

What is assortment planning?

Assortment Planning is the development of chain, store cluster and store level product attributes, styles, colors and SKUs that provide a basis for addressing localized customer preference, customer demand, store space as well as store characteristics.