ANALYSIS OF CLUSTERING SOLUTIONS

摘要

A computing system determines incremental values associated with a plurality of clustering solutions. Each of the clustering solutions groups stores of a retailer into clusters in a different way. For each clustering solution in the plurality of clustering solutions, the incremental value associated with the clustering solution indicates a difference between an estimated revenue associated with the clustering solution and revenue associated with a baseline clustering solution. The computing system then determines, based on the incremental values associated with the plurality of clustering solutions, the appropriate number of clusters. The clustering solutions that group the stores into more or fewer clusters than the appropriate number of clusters tend to be associated with incremental values that are the same or lower than the clustering solutions that group the stores into the appropriate number of clusters.