Joint optimization models for shelf display and inventory control considering the impact of spatial relationship on demand

Ju Zhao, Yong-Wu Zhou and M.I.M. Wahab

European Journal of Operational Research, 2016, vol. 255, issue 3, 797-808

Abstract: This research investigates joint optimization models for shelf space allocation and display location with multi-item replenishment. The demand for each item is considered to be dependent not only on its and other items’ allocated shelf space and displayed locations, but also on spatial relationships between items. Joint optimization models are developed for two different scenarios: (a) each item is replenished individually; and (b) multiple items are replenished jointly. A multi-stage simulated annealing (SA) based hyper-heuristic algorithm is proposed to solve both joint optimization models. These models are then evaluated numerically for different problem sizes. The results demonstrate that: (1) the proposed SA based hyper-heuristic algorithm is robust and efficient for both joint optimization models; and (2) the model for the joint replenishment policy leads to a higher profit than that of the model for the individual replenishment policy. Hence, the joint optimization model with joint replenishment policy will be helpful for retailers making decisions about shelf display arrangement and inventory control for multiple items.

Keywords: Display location selection; Shelf space allocation; Joint replenishment; Simulated annealing based hyper-heuristics (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221716303459
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:255:y:2016:i:3:p:797-808

DOI: 10.1016/j.ejor.2016.05.025

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().