A model and solution approach for store-wide shelf space allocation

Manuel Ostermeier, Tobias Düsterhöft and Alexander Hübner

Omega, 2021, vol. 102, issue C

Abstract: Store space is limited and one of the most costly resources of retailers. Retailers have to apportion available store space among the individual product categories of a store and therefore assign a certain share of shelf space to each category. Assigning more shelf space to one category requires reducing the number of shelves for another category as total space is limited. Reducing available shelf space in turn decreases assortment size and lessens the presentation quantity of products and vice versa. Both affect the demand of products and ultimately the profitability of the entire category such that the profit contribution of a category depends on its shelf size. This interrelation between category sizes and store profits needs to be taken into account for the shelf space assignment to categories and the space allocation for individual products.

Keywords: Retailing; Shelf space allocation; Space elasticity; Store layout; Integer program (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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DOI: 10.1016/j.omega.2021.102425

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