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Linear programming model to optimize product mix decisions in a retail setting, implemented in R with cost and capacity constraints.

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🏬 Retail Inventory Optimization

A linear programming–based simulation project for optimizing product mix decisions in a retail store. This analysis balances profit contribution, cost, and shelf space to recommend the most profitable inventory allocation strategy.

📎 Download Full Report


🎯 Project Highlights

  • Objective: Maximize total profit while considering space and budget constraints
  • Approach: Linear programming model formulated and solved using R
  • Constraints:
    • Product shelf space availability
    • Budget limit
    • Minimum/maximum product quantities
  • Key Takeaways:
    • Product 1 and 3 yield highest profit-to-space ratios
    • Increasing budget doesn't always lead to higher marginal profit
    • Sensitivity analysis reveals tight constraints with major impact

🛠 Technologies Used

  • Language: R
  • Libraries: lpSolve, ggplot2, dplyr
  • Modeling: Linear programming
  • Visualization: Bar charts, scenario comparison plots

📁 Files

  • /code/ – R source code and optimization script
  • /assets/ – Visualizations and charts
  • /report/ – Final PDF report
  • README.md – You are here

📊 Visual Summary

Optimization Result Chart

Profit vs Budget Sensitivity


👨‍💻 About Me

I'm currently pursuing a Master’s in Analytics, focusing on real-world applications of optimization, modeling, and business intelligence. My academic projects blend decision science, R programming, and data storytelling.


📬 Contact

Feel free to connect via LinkedIn
Or reach out via email: allen.lei.zhao@gmail.com
Portfolio: allenleizhao.github.io

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Linear programming model to optimize product mix decisions in a retail setting, implemented in R with cost and capacity constraints.

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