A retail category management model integrating shelf space and inventory levels
MetadataShow full item record
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 withthe 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.
Showing items related by title, author, creator and subject.
Pearce, Alan; Slawinski, D.; Feng, M.; Hutchins, B.; Fearns, Peter (2011)Application of an individual-based particle tracking model to the migration of tropical fish larvae alongthe continental shelf between the Houtman Abrolhos Islands and Rottnest Island (Western Australia)has shown that ...
Burt, Christina Naomi (2008)In the surface mining industry the equipment selection problem involves choosing a fleet of trucks and loaders that have the capacity to move the materials specified in the mine plan. The optimisation problem is to select ...
Hatton-Jones, Siobhan (2015)Consumers within retail settings are more likely to infer that scarcer products are of higher quality and therefore more likely to choose them (Lynn 1989). As a result product scarcity coupled with shelf display organisation ...