Department of Business AdministrationDepartment of Industrial Engineering2024-11-0920060377-221710.1016/j.ejor.2005.04.0482-s2.0-33744985462http://dx.doi.org/10.1016/j.ejor.2005.04.048https://hdl.handle.net/20.500.14288/8614This paper presents a mathematical programming based clustering approach that is applied to a digital platform company's customer segmentation problem involving demographic and transactional attributes related to the customers. The clustering problem is formulated as a mixed-integer programming problem with the objective of minimizing the maximum cluster diameter among all clusters. In order to overcome issues related to computational complexity of the problem, we developed a heuristic approach that improves computational times dramatically without compromising from optimality in most of the cases that we tested. The performance of this approach is tested on a real problem. The analysis of our results indicates that our approach is computationally efficient and creates meaningful segmentation of data.ManagementOperations researchManagement scienceJournal Article1872-686023880390001310288