Researchers have developed StoBasket, a novel formulation for optimizing joint upsell and cross-sell offers in retail recommendation systems. This approach aims to maximize contribution margin by considering the incremental profit from both replacing existing items and adding new ones, a departure from previous methods that treated these independently. Simulations on public datasets, including Instacart data, show StoBasket captures nearly all attainable offer margin, significantly outperforming existing recommenders and heuristics by up to 52% and 10.2% respectively. AI
RANK_REASON The item is a research paper submitted to arXiv detailing a new optimization formulation. [lever_c_demoted from research: ic=1 ai=1.0]
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