scholarly journals Merchandising rules for shelf space allocation with product categorization and vertical positioning

2021 ◽  
Vol 2021 (4) ◽  
pp. 34-59
Author(s):  
Sergey Subbotin ◽  
Kateryna Czerniachowska
Keyword(s):  
Shelf Space ◽  
Space Allocation ◽  
Shelf Space Allocation ◽  
Vertical Positioning

scholarly journals Genetic Algorithm for the Retailers’ Shelf Space Allocation Profit Maximization Problem

2021 ◽  
Vol 11 (14) ◽  
pp. 6401
Author(s):  
Kateryna Czerniachowska ◽  
Karina Sachpazidu-Wójcicka ◽  
Piotr Sulikowski ◽  
Marcin Hernes ◽  
Artur Rot
Keyword(s):  
Genetic Algorithm ◽  
Profit Maximization ◽  
Allocation Rule ◽  
Maximization Problem ◽  
Shelf Space ◽  
Allocation Model ◽  
Space Allocation ◽  
Shelf Space Allocation ◽  
To Receive

This paper discusses the problem of retailers’ profit maximization regarding displaying products on the planogram shelves, which may have different dimensions in each store but allocate the same product sets. We develop a mathematical model and a genetic algorithm for solving the shelf space allocation problem with the criteria of retailers’ profit maximization. The implemented program executes in a reasonable time. The quality of the genetic algorithm has been evaluated using the CPLEX solver. We determine four groups of constraints for the products that should be allocated on a shelf: shelf constraints, shelf type constraints, product constraints, and virtual segment constraints. The validity of the developed genetic algorithm has been checked on 25 retailing test cases. Computational results prove that the proposed approach allows for obtaining efficient results in short running time, and the developed complex shelf space allocation model, which considers multiple attributes of a shelf, segment, and product, as well as product capping and nesting allocation rule, is of high practical relevance. The proposed approach allows retailers to receive higher store profits with regard to the actual merchandising rules.

Shelf Space Allocation and Profit Maximization in Mass Retailing

1973 ◽  
Vol 37 (3) ◽  
pp. 54-60 ◽  
Author(s):  
Ronald C. Curhan
Keyword(s):  
Conceptual Models ◽  
Empirical Studies ◽  
Profit Maximization ◽  
Shelf Space ◽  
For Profit ◽  
Space Allocation ◽  
Practical Management ◽  
Shelf Space Allocation ◽  
Relationship Of ◽  
The Relationship

Conceptual models and empirical studies of the relationship of shelf space allocation to unit sales are reviewed in this article. This knowledge is organized to support specific recommendations for the practical management of shelf space for profit maximization.

scholarly journals A RETAIL CATEGORY MANAGEMENT MODEL INTEGRATING SHELF SPACE AND INVENTORY LEVELS

2009 ◽  
Vol 26 (04) ◽  
pp. 457-478 ◽  
Author(s):  
B. RAMASESHAN ◽  
N. R. ACHUTHAN ◽  
R. COLLINSON
Keyword(s):  
Optimal Solution ◽  
Management Model ◽  
Category Management ◽  
Shelf Space ◽  
Product Assortment ◽  
Space Allocation ◽  
Review Period ◽  
Proposed Model ◽  
Industry Practice ◽  
Shelf Space Allocation

A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment, shelf space allocation and common review period. The model takes into consideration several constraints such as the available shelf space, backroom inventory space, retailer's financial resources, and estimates of rate of demand for products based on shelf space allocation and competing products. The review period can take any values greater than zero. Results of the proposed model were compared with the results of the current industry practice for randomly generated product assortments of size six, ten and fourteen. The model also outperformed the literature benchmark. The paper demonstrates that the optimal common review period is flexible enough to accommodate the administrative restrictions of delivery schedules for products, without significantly deviating from the optimal solution.

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